The sale of passenger cars by citizens in Ukraine is subject to taxation, except for the first sale in the year. This means that Ukrainians who sell two or more cars within a year must pay a portion of the received amount to the state in the form of tax. The tax rate depends on the number of cars sold: for example, the tax rate on personal income for the sale of the second passenger car in the year is set at 5%. This was reported by the State Tax Service (STS).
This is reported by Finway
According to information from the STS, if a citizen sells a third and each subsequent passenger car, the tax rate increases to 18%. It is worth noting that these rates apply not only to passenger cars but also to other vehicles, including:
- motorcycles;
- scooters.
“In the case of selling a passenger car, motorcycle, or scooter, the income is determined based on the price specified in the sales contract. However, it cannot be lower (at the taxpayer’s choice) than the average market value of the respective vehicle or the market value determined in accordance with the law.”
Furthermore, the STS noted that the sale of buses, trucks, trailers, tractors, special equipment, and other movable property is taxed from the first sale. The tax rates for these categories are as follows:
- first and second sale – 5%;
- third and each subsequent sale – 18%.
It is also noted that income from these operations is subject to military tax, which will be set at 5% starting December 1, 2024.
“If an individual sold movable property and did not pay tax or military tax on that income, they are required to submit a declaration of property status and income and determine the corresponding tax obligations by May 1 of the year following the reporting year. And by August 1, they must pay the determined tax obligations.”
Thus, it is important for Ukrainians engaged in the sale of passenger cars and other movable property to be aware of the new tax requirements to avoid potential fines and sanctions.