The President of Ukraine has signed the Law "On Amendments to Chapter XXI "Transitional Provisions" of the Tax Code of Ukraine for Stimulation of Development of Ecological Transport Industry in Ukraine" No. 1660-IX and the Law "On Amendments to Paragraph 4 Chapter XXI "Final and Transitional Provisions" of the Customs Code of Ukraine for Stimulation of Development of Ecological Transport Industry in Ukraine" No. 1661-ІХ that was adopted by the Parliament on July 15, 2021.
The mentioned Laws provide an exemption from VAT till January 1, 2026, for vehicles with electric motors imported to Ukraine and delivered into the territory of the country.
Also, the tax regime easing will affect new cars with internal combustion engines running exclusively on compressed or liquefied methane or biogas.
Besides, till January 1, 2031 import of some goods by companies, which establish or modernize their production facilities for the creation of cars with electric motors, are exempted from VAT and import duty.
At that, the enterprises producing vehicles with electric motors as well as electric motors, lithium-ion (lithium-polymer) batteries and charging devices for them will not pay taxes on profit till December 31, 2035, on condition that they direct the released funds to research and development works in the field of electric transport, creation or re-equipment of material and technical basis, increase of production volume and implementation of the newest technologies.
