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03 Oct. 2024

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New rules for car sales in Ukraine: details

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New rules for car sales in Ukraine: details

The Ukrainian government has approved a new mandatory document when selling a car. Find out why it is needed and how it affects the transaction with the buyer

Apply for a car insurance policy at Visit Ukraine - guaranteed protection on the road in just 5 minutes!
Apply for a car insurance policy at Visit Ukraine - guaranteed protection on the road in just 5 minutes!
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The Government of Ukraine has adopted a resolution that slightly changed the rules for car sales. From now on, sellers will need to provide an additional document.


New rules for executing a car sale and purchase agreement


When selling vehicles by trading organisations, it is mandatory to submit a document confirming the value of the vehicle.


For the sale of a passenger car (two or more) or a truck at the service centres of the Ministry of Internal Affairs of Ukraine, a certificate of average value or an expert assessment of the value of the vehicle is a mandatory requirement. Thus, taxes are paid in full.


Previously, such vehicles were sold on the basis of the value announced by the seller.




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Income tax on the sale of a car


As you know, the sale of a used car is taxable in Ukraine:


🚗 For passenger cars, the sale of the first vehicle within a year is tax-free, the second - 5% of the value of the car, the third and more - 18%.

🚗 For trucks, the sale of the first and second 5% of the value, the third and subsequent - 18%. 


As explained by Deputy Minister of Internal Affairs of Ukraine Bohdan Drapyaty, if a car is sold for the second time in a year, it will be valued at UAH 450,000 with a certificate of average market value, and the 5% tax will be UAH 22.5 thousand. At the same time, a trade organisation assesses the value of a car not on the basis of an official document, but ‘according to the seller’, for example, UAH 15 thousand, and pays a tax of UAH 750. 


Please note that after purchasing a car, you should take out motor third party liability insurance, which is mandatory in Ukraine. Keep in mind that the CTP insurance policy is issued immediately after the car is registered. If the police stop the vehicle, the insurance policy will be checked along with other documents. Therefore, we advise you to buy a car insurance policy right now.


We remind you! For all cars with state registration, insurance is a prerequisite for legal movement in Ukraine. However, there are exceptions. Read here to find out which categories of people are exempt from compulsory car insurance and whether foreigners need to take out an insurance policy when entering Ukraine.


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.




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Visit Ukraine Insurance – insurance covering military risks for entry and travel in Ukraine;

Visit Ukraine Car Insurance – car insurance with extended coverage in Ukraine;

Visit Ukraine Legal Advice – comprehensive legal support on entry to Ukraine;

Visit Ukraine Tickets – bus and train tickets to/from Ukraine;

Visit Ukraine Tours – the largest online database of tours to Ukraine for every taste;

Visit Ukraine Hotels – hotels for a comfortable stay in Ukraine;

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Frequantly

asked questions

What documents are needed to sell a car?

- Vehicle registration certificate (VRC) - Passport of the vehicle (PTS) - Policy of motor third party liability insurance - Passport of the owner - Buyer's passport - Car sale and purchase agreement

How long is a car purchase and sale agreement valid in Ukraine?

How much does it cost to re-register a car with the MREO?

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