Ukraine cancels VAT, excise tax on imports of electric cars in 2018

Respective bill of amendments No. 2245-VIII was published in the parliament's Holos Ukrayiny newspaper on December 30 and became effective on January 1, 2018.

Read alsoSales of new cars in Ukraine grow by 26% in 11 months"Vehicles equipped with electric engines alone will be temporarily exempt from value added tax until December 31, 2018 if imported into the customs territory of Ukraine and supplied to the customs territory of Ukraine... Vehicles equipped with electric engines alone will be temporarily exempt from excise tax until December 31, 2018 if imported into the customs territory of Ukraine and sold in the customs territory of Ukraine," the document said.

Previously, imports of electric vehicles were subject to VAT at a rate of 16.8% and an excise tax of 109 euros.

As UNIAN reported, imports of electric vehicles in January-November 2017 increased by 13% compared to the same period last year, to 2,274 cars.

The Ukrainian parliament's tax committee is drafting a bill to stimulate the development of service stations for electric vehicles in Ukraine.