The new size of the military levy: who will be affected by the sale of motor vehicles?

The Verkhovna Rada adopted in the first reading the draft law, which provides for the increase of a number of taxes. Some changes will also affect motorists.

On September 17, Ukrainian parliamentarians adopted draft law No. 11416-d as a basis , the main purpose of which is to revise tax rates during martial law. It should be emphasized right away that while this is only the first reading, after which amendments may still be made to the document, accordingly, its final version may still be changed. And in order to obtain the status of a law, it must receive at least 226 votes of people's deputies in the second reading (voting as a whole).

However, since this is the second attempt to raise taxes, and we are considering a revised bill, there is a chance that this time it will still be passed. Therefore, let's consider those changes that could potentially affect motorists.

Since 2020, rules have been introduced according to which the second and third (and all subsequent) sales by an individual in the reporting (calendar) year of a passenger car, moped or motorcycle are taxed at the rate of 5% and 18%, respectively. A military levy is added to these rates, the amount of which is currently 1.5%.

If a truck, bus, trailer, tractor or special equipment is sold, taxation applies from the first transaction (at a rate of 5%), for the second sale in the year, 5% is also charged, for the third and all subsequent ones - 18%. Here, too, 1.5% of the military levy is added each time. Interest is determined from the appraised value of the vehicle.

What will change if the said draft law is adopted in the same version as it is now? The rate of the military tax will increase from 1.5% to 5%, starting from October 1, 2024 (we remind you - if the document becomes law by then). These increased unemployment rates will be in effect until December 31 of the year in which martial law will be lifted.

So, in the end, at the second sale of a car, moped or motorcycle by an individual in a year, the seller will have to pay 5+5%, i.e. a total of 10% of the estimated value of the vehicle sold. When the third sale takes place (and all subsequent ones) within the year, the tax rate will be 18+5=23% of the value of the vehicle.

In the same way, it is possible to determine what the total amount of taxation will be for buses, trucks, trailers, tractors or special equipment that was privately owned by individuals before the sale: 10% for the first and second sales of the year, and 23% for the third and all subsequent ones .

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