by Car customs clearance in Ukraine has already become free, and the first cars have already been imported without paying VAT, excise tax, and duty. Of course, many motorists have numerous questions about the new rules. Here are the answers to the most common ones.
How long does zero customs clearance last?
Martial law was introduced in Ukraine from February 24 to March 25, then it was extended for another 30 days, until April 25. Thus, the right to duty-free import of vehicles can be used for only two and a half weeks – that is, until April 25, 2022. Of course, the President can extend this state for the period while the threat to the country’s security persists, but legally it will end on 25.04.2022. Such vehicles must be registered no later than 10 days after import.
Who can take advantage of duty-free import?
According to Article 69.24 of the Tax Code, introduced by Law No.2142-IX, natural persons are exempt from value-added tax and excise tax. And in the Customs Code, by Articles 9-11, these goods are also exempt from import duties. Thus, no taxes need to be paid when importing cars. Sole proprietors can use this right but must pay excise tax.
Which cars cannot be imported under this law?
The ban applies to territories where they are produced or from which they are brought. These are vehicles originating from a country recognized by the state as an occupier or aggressor against Ukraine, or imported from the territory of the occupying state (aggressor) and/or from the occupied territory of Ukraine. Thus, importing a car from Russia, Belarus, and Crimea without customs clearance is impossible.
Which vehicles are imported without customs duties?
The list of vehicles allowed for import includes passenger cars, bodies for them, trailers and semi-trailers, motorcycles, vehicles intended for transporting 10 people or more, and vehicles for transporting goods. The law does not specify new or used cars, so “zero customs clearance” applies to all. Although there are age restrictions for used cars due to other Ukrainian laws.
What are the age and environmental restrictions?
Any vehicles listed above can be imported into Ukraine without paying taxes. However, if you wish to register it and get Ukrainian numbers, there are some restrictions. According to the “Procedure for the state registration (re-registration) of cars,” approved by CMU resolution of December 23, 2009, No. 1371, it is impossible to register buses converted from other vehicles, cars with right-hand steering (for the needs of the Armed Forces, such vehicles are imported from Britain en masse), without a compliance certificate, without existing or with damaged identification numbers of units (body, chassis, frame, engine). Such cars can be imported tax-free for dismantling into parts.
According to the Law of Ukraine “On Road Traffic” No.3353-XII, a compliance certificate must be presented for registration. It should specify the environmental standard the vehicle complies with.
Registration is allowed:
- For passenger cars – not lower than “Euro2,” meaning manufactured no earlier than 1996.
- For trucks, the standard is not lower than “Euro5,” which were produced from 2009.
Do you have to pay additional customs duties after the end of martial law?
No. The “zero customs clearance” law states that imported cars are used for free circulation. That is, if a natural person manages to import a car during martial law, no additional payment is required. The car (or several) can be sold even the next day. Of course, for selling more than one car during one calendar year, a tax will be levied, which has existed before. Former “eurobonds,” previously imported into Ukraine, can be legalized this way only if they are exported and imported into Ukraine during wartime.
What needs to be paid at registration?
Besides the cost of the car abroad and transportation costs, you need to pay for the issuance of a compliance certificate (2000 – 3000 UAH).
During state registration at the Service Center of the Ministry of Internal Affairs of Ukraine, you need to pay 3-5% of the car’s value to the Pension Fund, as well as for license plates, the registration certificate form, and license plates. If the car costs up to 409,365 UAH ($13,900 or 12,800 euros), you must pay 3% of its value to the PF, if the customs declaration lists an amount above 719,491 UAH ($24,500 or 22,500 euros), then – 5%. A tax of 4% is charged for cars costing between 409,365 and 719,491 UAH. The cost of plates and certificates with services from the Ministry of Internal Affairs’ Service Center is about 450-600 UAH.
How and where to bring a car from abroad?
During martial law, leaving Ukraine for military obligated men aged 18-60 is prohibited (except for some exceptions). Therefore, men over 60 or women can leave to purchase a car. Also, specialized companies or foreigners can deliver the car by auto transporter.
As for delivery routes, the Black Sea ports, from where cars from the USA, Korea, and Georgia were coming, are blocked. They can be brought through European ports (Germany, Greece, Poland, or Lithuania), and then delivered through Poland, Slovakia, Hungary, or Romania. However, this is much more expensive than through Odesa or Chornomorsk. The most realistic way is to buy a car in one of the European Union countries through a mediator who will take the car across the Ukrainian border. Of course, he will charge a certain amount for this.
Will cars get cheaper due to “zero customs clearance”
Of course, because the cost of customs clearance before this law came into force was about 30-35% of the car’s cost. However, not all cars will get cheaper equally. Due to transportation costs, prices for cars from the USA and Korea will not change as much. European passenger cars will be cheaper depending on the brand and model. Commercial “vans” and trucks should become significantly cheaper.
TopGir via Auto24
