Transport tax in Ukraine in 2024: which cars are subject to taxation?

The vehicle tax in Ukraine, or car tax as it is also called, depends on the amount of the minimum wage. But despite the fact that its amount increased in 2024, the list of taxable vehicles has become much shorter.

Let's figure out what the transport tax depends on, who has to pay it, and how it is calculated.

Who pays the transport tax in 2024?

Vehicle taxpayers are legal entities and individuals. This list also includes non-residents if they own cars that are officially registered in the country, in accordance with subpar. 267.2.1. OF THE TAX CODE. It is the owners of passenger cars who must pay the tax. This rule does not apply to renters or persons using vehicles on the basis of a general power of attorney.

Objects of transport taxation

Passenger cars that meet the following criteria are subject to taxation:

• no more than 5 years have passed since their serial production;

• the market average value of movable property is higher than 375 times the minimum wage as of January 1, 2024. Thus, the current amount is: 375 x 7100 UAH = 2,662,500 UAH.

It should be noted that we are talking about the year of manufacture of the car, not the year of purchase or use. The accompanying technical documentation will help you determine it. But if this date cannot be found in the documents, you need to search for the body number by VIN code.

Thus, the transport tax should be paid only for passenger cars that meet the criteria of Law No. 2344-III. All other cars, including specialized and cargo vehicles, are not taxed. 

How to calculate car tax?

The tax amount is not affected by the market value of the vehicle. The STS sets a fixed rate of UAH 25 thousand.

Also, as of January 1, 2024, the amount of the mandatory fee for the first car registration has changed. Its total cost is set in accordance with the subsistence minimum and the cost of the vehicle, but excluding VAT.

Thus, the car owner will have to pay the following amounts for the first registration:

• 3% if the cost of the car is higher than 165 times the subsistence minimum for able-bodied persons. Currently, this amount is UAH 499,620;

• 4% if the cost is in the range of 165 to 290 times the subsistence minimum. This is from UAH 499,620 to UAH 878,120;

• 5% if the cost exceeds 290 times the subsistence minimum, which is UAH 878,100.

Individuals and legal entities pay transport tax in different ways. For example, individuals are notified of their obligation to pay the tax by the State Tax Service. A payment of UAH 25,000 is made immediately upon receipt of a notification from the tax office. There is no need to fill out and submit a declaration.

Thus, a citizen does not need to search for information on paying the tax on his or her own. Every year, the Ministry of Economy publishes a list of taxable vehicle models and brands on its official website.

As for legal entities, they have to calculate the car tax on their own and pay it within a year. 

Peculiarities of transport tax payment by legal entities

Legal entities must:

• independently determine which cars on the company's balance sheet are subject to taxation;

• calculate the transport tax on your own;

• fill out and submit a declaration to the State Tax Service in a timely manner.

The declaration is submitted in accordance with the rules set forth in subpar. 267.6.4 OF THE TCU. The law establishes certain reporting periods for the payment of transport tax. For example, a legal entity had to file a declaration for 2023 by February 20, 2024. However, if the vehicle was purchased during the current year, the declaration must be submitted within 1 month from the date of purchase.

The Order of the Ministry of Finance No. 415 establishes the procedure for filing a vehicle tax declaration. Thus, by January 1, 2024, all vehicles that were purchased by the company during the previous year and are subject to taxation had to be declared. This means that even if a vehicle has already been sold, it still needs to be reported in the tax return.

Thus, a legal entity pays transport tax throughout the year. This amount is divided into equal parts and paid quarterly.

If the car is removed from the company's balance sheet during the year, the legal entity submits a clarifying declaration.

Periods of payment of transport tax in 2024

The following deadlines have been set for the current year:

• Individuals pay transport tax within 60 days of receiving a notification from the State Tax Service;

• legal entities pay the tax every quarter, by the 30th day of the month, in equal advance installments:

The tax is paid for each passenger car that is subject to taxation by law.

In accounting, an entrepreneur records the transport tax in account 92 "Administrative expenses".

How to get a car license for a legal entity?

If a legal entity is engaged in freight or passenger transportation, it must have a license to do so. In order to obtain it, an entrepreneur must take the following steps:

1. Apply to the State Transport Safety Service and fill out and submit the appropriate application. The document is submitted and signed by the company owner personally. The application must specify the name of the organization, actual and legal location, EDRPOU code, type of activity, etc.

2. Provide the following documents:

• information on vehicles leased or purchased on credit,

• information on the qualifications of employees,

• information about technical personnel,

• information on material and technical support,

• requirements for the qualification of drivers of freight or passenger vehicles,

• requirements for medical professionals involved in the examination of drivers before they are sent on a flight.

After a legal entity obtains a license, it must notify the state authority of all changes that will occur at the enterprise, both with the personnel and the vehicle fleet.

The State Service of Ukraine for Transport Safety issues a decision on obtaining a license within 10 days from the date of receipt of the relevant application. Payment for the license is made to the payment details of the state service.

There is nothing complicated about paying transport tax if you respond to the requirements of the State Tax Service in a timely manner and keep proper records. Be aware, and the law will always be on your side!