Car sales in Ukraine: what taxes need to be paid and how to avoid fines.

Many drivers who want to sell their cars sometimes forget about taxation. To avoid problems with the tax authorities, learn about the key rules.

In particular, when selling passenger cars, motorcycles, and mopeds, taxation works as follows:

• The first sale of the year is not taxed.
• The second sale is taxed at 5% of the value.
• The third and subsequent sales are taxed at 18%.

In the case of trucks, buses, or trailers, the rates are slightly different:

• The first and second sales of the year are taxed at 5%.
• The third and subsequent sales are taxed at 18%.

It is important to remember about the military levy

In addition to the income tax, you must pay a military levy of 5% on each sale of a vehicle. This is a mandatory fee that is added to the main tax.

Don't forget about income declaration

If you sold your car but did not pay the tax or military levy, you need to submit an income declaration by May 1 of the following year. Then there is an opportunity to pay the accrued tax by August 1. This requirement applies to all citizens of Ukraine who are tax residents.

So, remember about taxation when selling a car, and you will avoid unpleasant surprises from the fiscal service.