In Ukraine, control over car sales has been tightened: 'dealers' in panic.

Changes in the procedure of commission trade in cars

On October 1, the Cabinet of Ministers of Ukraine approved a new decree that introduces changes to the procedure of commission trading in cars. The main purpose of these changes is to avoid artificially lowering the estimated value of cars, which led to the loss of millions of hryvnias from the state budget annually, reports AUTO-Consulting.

The new rules have significantly affected the business of dealers who sold more than one car during the year. Now they cannot lower the price by 5000-10000 hryvnias and pay tax on this reduced amount. Territorial service centers of the Ministry of Internal Affairs require indicating the real value of the car and paying the corresponding tax.

This has led to panic among market participants. Sales have practically stopped as sellers are not ready to pay taxes on the real value of cars. Companies that previously helped minimize taxes also refuse to process transactions at undervalued prices.

Currently, sales are mainly formalized by those who are selling their first car of the year. Other sellers are confused as the new rules require paying tax on the real or close to real value.

The evaluation of car values is carried out by a special service of the Ministry of Internal Affairs and authorized appraisal entities. Experts use the "Automotive Merchandise Bulletin" to determine the market value, taking into account mileage, technical condition, completeness, and other factors.

The question remains open whether the 'dealers' will find ways to circumvent the legislation or start paying taxes in full. The situation in the used car market remains tense, and market participants are anxiously awaiting further developments.