Ukrainian Parliament votes to exempt electric cars from VAT and excise duties

(112 UA)– The National Parliament of Ukraine has introduced provisional benefits that will exempt electric cars manufactured in Ukraine from paying VAT and excise duty in 2018. At the same time, benefits for services of electric car taxis and leasing of electric cars have been annulled, Interfax-Ukraine reports.

Such amendments to bill 6776-D that will amend the Tax Code of Ukraine was supported by 274 members of Parliament.

On 8 December 2017 the Tax Code of Ukraine was amended, which will exempt imports of electric cars to the country from paying VAT and excise duty in 2018. Also, passenger transportation services for taxis equipped with one or more electric motors, as well as renting of passenger electric vehicles (including leasing, rental and transportation on request) were exempted from paying VAT.

Earlier, imports of electric cars from 2016 was exempted from import duty. Various operators reportedly were expecting the abolition of VAT and excise duty. Sales of both new and used electric vehicles increased 3.2-fold between January and October 2017 year-over-year to 2,225 cars, according to the Ukrautoprom association.

SOURCE:: 112 UA

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