Car sales tax in 2026: who pays and what rates apply in Ukraine

Selling a car in Ukraine entails tax obligations for the vehicle owner. Find out who pays the tax, what rates apply to the second and third sales, and whether a power of attorney affects taxation

Get your car insurance at Visit Ukraine - guaranteed protection on the road in just 5 minutes!

BUY

Selling a car in Ukraine involves not only concluding a purchase and sale agreement and re-registering the vehicle, but also clearly defined tax obligations. The law explicitly stipulates who is required to pay tax and in which cases it arises. Even if the car is sold by power of attorney, the tax liability remains.

This is reported by the Main Service Center of the Ministry of Internal Affairs with reference to the provisions of the Tax Code of Ukraine.

Who pays the tax on the sale of a car

According to Article 173 of the Tax Code of Ukraine, income from the sale or exchange of movable property is subject to taxation.

The taxpayer is the owner of the vehicle — the person in whose name the car is officially registered. It is this person who receives the income from the transaction and, therefore, it is this person who is responsible for paying the tax.

If the car is sold by an authorized representative under a notarized power of attorney, they only represent the interests of the owner. Ownership does not transfer to them. Accordingly, tax obligations remain with the owner of the vehicle.

In other words, selling a car “by power of attorney” does not change the tax status of the transaction.

Tax rates when selling a car: how much you will have to pay

The amount of tax depends on the number of sales during the calendar year.

● The first sale of a passenger car, motorcycle, or moped in a year is not taxed.

● The second sale during the same year is subject to a 5% personal income tax (PIT).

● The third and each subsequent sale is subject to an 18% PIT.

In cases where rates of 5% or 18% apply, a military tax is additionally payable.

Thus, if the owner sells a car for the second or third time in a year, the financial burden increases significantly. That is why, before concluding a deal, it is important to take into account the number of sales already made in the current year.

Don't want to miss important updates and useful articles? Subscribe to our weekly newsletter!

How the number of vehicle sales is calculated

Sales transactions are recorded within the calendar year. The data is verified during the re-registration of the vehicle at the MIA service center.

The information is recorded in official registers, so it is practically impossible to hide the number of transactions. It is at the re-registration stage that it is checked whether this is the first, second, or third sale in the year, and the tax rate is applied accordingly.

Important nuances to consider

The Main Service Center of the Ministry of Internal Affairs emphasizes several key points:

● Selling a car by power of attorney does not exempt you from paying tax.

● Tax is calculated based on the owner's income.

● The presence of a representative does not change tax obligations.

● Transactions are recorded within the calendar year.

This means that any attempt to “circumvent” the rules by transferring authority to another person does not affect the tax liability.

In addition to tax issues, when selling or buying a car, it is important to check the validity of the insurance policy. Motor vehicle insurance (OSCPV) is mandatory for all vehicle owners.

After re-registering the car, the new owner must take care of obtaining a policy if the car was not insured. This can be done online — for example, through the Visit Ukraine service, where you can quickly obtain motor vehicle insurance without visiting the insurance company's office. This allows you to avoid fines and provides financial protection in the event of an accident.

We remind you! The capital's authorities have expanded the support program for veterans with disabilities, adding the possibility of receiving partial compensation for the purchase of a used car. The amount of payments ranges from 320 to 665 thousand hryvnias, depending on the type of car. Read more about the terms of the program, compensation amounts, and the list of documents required for registration.

Photo: wirestock / freepik

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

We recommend purchasing it for a safe and comfortable trip to Ukraine: 

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;

Visit Ukraine Merch – patriotic clothing and accessories with worldwide delivery.

© 2018-2026, Visit Ukraine. Use, copying or reprinting of materials on this site is permitted only with a link (hyperlink for online publications) to Visit Ukraine.

All rights reserved.