Tax and accounting insights for Ukraine
24.06.24
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We bought a car. When do we start paying transport tax?

Pursuant to sub-clause 267.1.1 of the TCU, transport tax payers are individuals and legal entities, including non-residents, who have their own passenger cars registered in Ukraine in accordance with the applicable law, which are subject to taxation in accordance with sub-clause 267.2.1 of the TCU.

The taxable objects are passenger cars that have been manufactured not more than five years (inclusive) and whose average market value exceeds 375 minimum wages established by law as of January 1 of the tax (reporting) year (sub-clause 267.2.1 of the TCU).

When executing a transaction for the acquisition of property rights, it should be noted that in accordance with Article 210 of the Civil Code of Ukraine No. 435-IV dated January 16, 2003, the transaction is subject to state registration in cases established by law. Such a transaction shall be deemed to have been made from the moment of its state registration. The list of state registration authorities, the registration procedure, and the procedure for maintaining the relevant registers are established by law.

The only procedure for state registration (re-registration) and deregistration of motor vehicles in Ukraine is established by the Resolution of the Cabinet of Ministers of Ukraine No. 1388 of 07.09.1998 "On Approval of the Procedure for State Registration (Re-registration) and Deregistration of Cars, Buses, and Self-Propelled Machines Constructed on the Chassis of Cars, Motorcycles of All Types, Brands and Models, Trailers, Semi-Trailers, Motorized Wheelchairs, Other Equivalent Vehicles and Mopeds".

Thus, for vehicles purchased during the year, vehicle tax is payable starting from the month in which the ownership of such an object arose - the vehicle was registered.

Thus, if the month in which the vehicle was purchased and the month in which its state registration was carried out are different, the vehicle tax should be paid from the month in which the vehicle was registered.

Main State Tax Service in Odesa region

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