It is known that when an individual sells his or her first car in a year, no tax is levied. Find out more about how to sell a second car in a year and how much you will have to pay

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The sale of cars in Ukraine by individuals is a fairly common practice. However, before entering into a transaction, it is worth understanding the tax implications of such a transaction. What taxes car owners will have to pay when selling their vehicles is discussed further in this article.

How to sell a second car within a year: the amount of tax

When an individual sells a car, motorcycle or moped in Ukraine, taxes are due. Their amount depends on the number of cars sold during the year:

● first car - no tax is paid;
● the second car - 5% of the cost of the car + military duty (1.5%) is paid;
● the third and subsequent cars - 18% of the car value + military duty (1.5%) is paid.

Please note that the sale of the first and second bus, truck, tractor and other special equipment is subject to a 5% tax and a 1.5% military duty. For the third sale of such movable property, you will have to pay an 18% tax and a 1.5% military duty on the value of the vehicle.

Important! The value of a car for tax purposes is usually determined under the sale and purchase agreement.

Keep in mind that if you sell a vehicle for the second time in a year, you must personally contact the service centre of the Ministry of Internal Affairs.

In the previous article, we explained how to re-register a car to another owner at a service centre of the Ministry of Internal Affairs.

However, if you are planning to sell your car for the first time in a year, you can re-register the car to another owner through Diia. For more details, follow the link.

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A reminder for Ukrainian drivers!

According to the law of Ukraine, every driver of a vehicle must take out compulsory car insurance. Motor third party liability insurance (MTPL) is a Ukrainian insurance policy that compensates victims of road accidents.

If you have a valid CTPCI policy, the insurance company of the culprit will compensate the injured party.

On Visit Ukraine, you can buy a CTP policy from a licensed insurer. Packages with a deductible of UAH 3200, UAH 1600, and UAH 0 are available.

We also advise you to pay attention to voluntary Mini Hull insurance for additional protection on the roads of Ukraine. On the Visit Ukraine portal, you can purchase a Mini Hull insurance policy from a reliable insurer for reliable protection on the country's roads online. Three package options are available for periods ranging from one month to one year for cars, motorcycles, scooters, trucks, as well as trailers and semi-trailers.

Just a reminder. For every vehicle with a Ukrainian registration, it is mandatory to take out a motor third party liability insurance policy. Read here to find out what penalties are provided for by law for the absence of a policy and how to quickly buy a motor third party liability insurance online.

Photo: Freepik 

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