New taxation rules for car sales: what has changed since December 1, 2024

New rules for taxation of vehicle sales transactions have come into effect in Ukraine since the beginning of December 2024. These changes apply to both individuals and legal entities selling cars, motorcycles, mopeds, buses, trucks, and special equipment. The main innovation is an increase in military duty to 5%.

New tax rates

1. Cars, motorcycles, mopedsSecond sale in a calendar year: 5% income tax + 5% military levy = 10% total taxation.Third and subsequent sales: 18% income tax + 5% military levy = 23% total taxation.
2. Second sale in a calendar year: 5% income tax + 5% military levy = 10% total taxation.
3. Third and subsequent sales: 18% income tax + 5% military levy = 23% total taxation.
4. Buses, trucks, special equipmentFirst and second sale in a calendar year: 5% income tax + 5% military levy = 10% total taxation.Third and subsequent sales: 18% income tax + 5% military levy = 23% total taxation.
5. First and second sale in a calendar year: 5% income tax + 5% military levy = 10% total taxation.
6. Third and subsequent sales: 18% income tax + 5% military levy = 23% total taxation.

What does this mean for sellers?

• The importance of sales planning. Now, each subsequent vehicle sale transaction during the year will be subject to higher taxes, so it is worth estimating in advance how many cars you plan to sell.
• Additional costs. Raising the military levy rate to 5%, combined with a basic income tax, could significantly increase the financial burden.

How to avoid misunderstandings?

To calculate taxes correctly and avoid penalties, it is important to understand what rules apply to your vehicle category. If you are unsure of your calculations or need additional advice, the WAH team is ready to help.

Why is this important?

The new rules are part of a state policy aimed at increasing budget revenues and supporting the country's defense capabilities. All funds raised will contribute to improving Ukraine's financial stability.

Contact our specialists for detailed advice on tax changes and profitable planning of your transport sales operations.

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