Aug 17, 2021 - 01:16 pm

Ukraine extends VAT exemption for BEVs

Ukraine is sticking to its strategy for imported electric vehicles and renewing a VAT exemption first approved by parliament in early 2018. President Volodymyr Zelensky signed legislation to this effect, meaning that VAT on the import of electric vehicles will no longer apply until the end of 2025.

Electric cars, electric buses, electric trucks, but also electric-specific equipment will benefit from the guidelines already passed in 2018 and now extended. Until the beginning of January 2029, components and equipment needed for the production of electric vehicles will be exempt from import duty. No VAT and also no import duties will be paid by companies until 1 January 2031 for a number of goods that serve to set up or modernise production facilities for the manufacture of environmentally friendly means of transport.

In addition, until 31 December 2035, the profits of companies that manufacture these vehicles, as well as electric motors, lithium-ion (lithium-polymer) batteries and chargers for these vehicles, will be exempt from tax. The legislation also aims to increase the share of cars with electric motors in public vehicle procurement to at least 50 per cent by 2030.

Support for electric mobility is not the end of the story. The authorities are also planning bans. The Ministry of Infrastructure proposes to ban used cars with diesel engines from 1 January 2027 and new cars with diesel engines and used and new cars with petrol engines from 1 January 2030.

Ukraine introduced a provisional VAT exemption for fully electric vehicles in early 2018 for the first time for the current year. In November 2018, the parliament agreed to extend it until the end of 2022.

tadviser.compresident.gov.ua (in Russian)

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Found on electrive.com
https://www.electrive.com/2021/08/17/ukraine-extends-vat-exemption-for-bevs/
17.08.2021 13:17