Ukraine approves list of cars subject to taxation

The Ministry of Economy has approved the list of passenger cars subject to transport tax in 2025. The luxury tax is 25 thousand hryvnias. This was reported by RBC-Ukraine with reference to the press service of the Ministry of Economy.

The list includes cars with an engine displacement of more than 2.5 liters. The year of manufacture of such cars is up to 5 years.

In particular, the list includes cars of such brands as Aston Martin, Audi, Bentley, BMW, Hymer-Mercedes, Ineos, Jaguar, Lamborghini, Land Rover, Lexus, Maserati, Mercedes-AMG, Mercedes-Benz, Mercedes-Maybach, Porsche, Rolls-Royce, Toyota.

As noted in the report, the calculation of the average market value of passenger cars for the purposes of transport taxation is carried out in accordance with the Tax Code of Ukraine.

Tax on luxury cars

The transport tax in Ukraine was introduced in 2015. It is levied on owners of expensive passenger cars that were manufactured no more than five years ago.

The transport tax applies to cars that are less than five years old and cost more than 375 minimum wages. Given that the minimum wage as of January 1, 2025 is UAH 8 thousand, this amount is UAH 3 million for 2025. The tax rate is UAH 25 thousand per car.

The average market price of a passenger car is determined by the Ministry of Economy of Ukraine. This price is then adjusted using a coefficient that depends on the age of the car: the older the vehicle, the lower the coefficient, and, accordingly, the lower the average market value.

The tax is paid by individuals and legal entities, as well as non-residents who have registered a car in Ukraine. The tax must be paid by the owners of the vehicles, not by lessees or persons using the car under a general power of attorney.

Individuals must pay the tax within 60 days after receiving a notification, while legal entities must pay in advance on a quarterly basis by the 30th day of the month following the reporting quarter.

Author: Oleksandr Bilous