The Head of State signed laws on stimulating the development of the ecological transport industry in Ukraine.
President of Ukraine Volodymyr Zelenskyy signed the Law "On Amendments to Section XX "Transitional Provisions" of the Tax Code of Ukraine Regarding the Stimulation of the Development of the Ecological Transport Industry in Ukraine" No. 1660-IX and the Law "On Amendments to Paragraph 4 of Section XXI "Final and Transitional Provisions" of the Customs Code of Ukraine Regarding the Stimulation of the Development of the Ecological Transport Industry in Ukraine" No. 1661-IX, which the Verkhovna Rada adopted on July 15, 2021.
These documents aim to increase the share of ecological transport in Ukraine by increasing accessibility for consumers and stimulating the development of production in our country of electric vehicles, tram cars and subway cars, internal combustion engine vehicles with spark ignition that run exclusively on compressed or liquefied methane or biogas.
To this end, the laws provide for the application of a number of tax preferences. Temporarily, until January 1, 2026, operations for the import into Ukraine and supply on the territory of Ukraine of vehicles equipped with electric motors, as well as new cars with internal combustion engines running exclusively on compressed or liquefied methane or biogas, are exempt from value added tax (VAT).
Also, until January 1, 2031, the import into Ukraine of a number of goods by enterprises that create or modernize their production facilities for the creation of the above-mentioned vehicles is exempt from VAT and import duties (this does not apply to goods from a country recognized as an occupying state or an aggressor state, and goods from the occupied territory of Ukraine).
In addition, until December 31, 2035, the profit of enterprises that produce these vehicles, as well as electric motors, lithium-ion (lithium-polymer) batteries and chargers for them, is exempt from taxation, provided that the released funds are directed to research and development work in the field of electric transport, the creation or re-equipment of the material and technical base, increasing the volume of production, and introducing the latest technologies.
The adoption of these laws will help protect the environment, as it will contribute to reducing air pollution, stimulate increased investment in the automotive and electrical engineering industries of the Ukrainian economy, and create new jobs.
These laws come into force on January 1, 2022.
President of Ukraine Volodymyr Zelenskyy signed the Law "On Amendments to Section XX "Transitional Provisions" of the Tax Code of Ukraine Regarding the Stimulation of the Development of the Ecological Transport Industry in Ukraine" No. 1660-IX and the Law "On Amendments to Paragraph 4 of Section XXI "Final and Transitional Provisions" of the Customs Code of Ukraine Regarding the Stimulation of the Development of the Ecological Transport Industry in Ukraine" No. 1661-IX, which the Verkhovna Rada adopted on July 15, 2021.
These documents aim to increase the share of environmentally friendly transport in Ukraine by increasing accessibility for consumers and stimulating the development of production in our country of electric vehicles, tram cars and subway cars, internal combustion engine vehicles with spark ignition operating exclusively on compressed or liquefied methane or biogas.
To this end, the laws provide for the application of a number of tax preferences. Temporarily, until January 1, 2026, operations for the import into Ukraine and supply on the territory of Ukraine of vehicles equipped with electric motors, as well as new cars with internal combustion engines operating exclusively on compressed or liquefied methane or biogas, are exempt from value added tax (VAT).
Also, until January 1, 2031, the import into Ukraine of a number of goods by enterprises that create or modernize their production facilities for the creation of the above-mentioned vehicles is exempt from VAT and import duty (this does not apply to goods from a country recognized as an occupying state or an aggressor state, and goods from the occupied territory of Ukraine).
In addition, until December 31, 2035, the profit of enterprises that produce these vehicles, as well as electric motors, lithium-ion (lithium-polymer) batteries and chargers for them, is exempt from taxation, provided that the released funds are directed to research and development work in the field of electric transport, the creation or re-equipment of the material and technical base, increasing the volume of production, and introducing the latest technologies.
The adoption of these laws will help protect the environment, as it will contribute to reducing air pollution, stimulate increased investment in the automotive and electrical engineering industries of the Ukrainian economy, and create new jobs.
These laws come into force on January 1, 2022.