In Ukraine, there are rules for taxing operations involving the sale or exchange of vehicles. This is determined by Article 173 of the Tax Code of Ukraine, reports UNN with reference to the State Tax Service of Ukraine.
Details
According to current legislation, if an individual sells or exchanges one passenger car, motorcycle, or moped within a year, such income is not taxed. In the absence of other incomes subject to mandatory taxation, there is no need to submit an annual tax declaration on property status and income, the tax service added.
However, in the case of selling a second passenger vehicle within the same year, the income from such an operation is already subject to taxation at a rate of 5%. But if a person sells a third and each subsequent vehicle, a tax rate of 18% applies. In addition, such income is subject to military levy at a rate of 5%.
Income from the sale or exchange of a passenger car, motorcycle, moped is determined based on the price specified in the sales contract (or exchange), but not lower than the average market value of such a vehicle or not lower than its appraised, market value (at the taxpayer's choice)
Recall
The Cabinet of Ministers of Ukraine plans to submit a large tax bill to parliament in the near future, with the aim of voting on it in early April before the trip to the IMF spring meetings.