📋 Tender Overview
On October 1, the Government adopted a resolution, according to which the procedure for the commission trade in vehicles is being improved, in particular with regard to the mandatory submission of a document confirming the value of the vehicle for concluding a sales contract.
"The decree obliges trade organizations to indicate the real value of the car in the sales contract, not the undervalued one. If the sale of a passenger car is not the first in a calendar year, but the second or more, a corresponding statement in an arbitrary form is submitted regarding the facts of vehicle sales in the current year, to which an estimate of the value of the vehicle is attached. For passenger cars, you can submit an extract from the website of the Ministry of Economy, where the average market price of the vehicle is indicated. When selling a truck, you only need to submit a value estimate. The amount specified in the estimate is attached to the sales contract. From it, a tax is paid on the income received from the sale of vehicles, plus 1.5% of the military levy," explains the Head of the Main Service Center of the Ministry of Internal Affairs of Ukraine, Mykola Rudyk.
As of today, if a person sells his first car during the calendar year, he does not pay income tax. But if it is the second car sale during the calendar year, the tax is 5%. In the case of the third and all subsequent sales, the profit tax will be 18 percent. The tax on the first sale of a truck is 5%, the second and subsequent sales are 18%.
The need to improve the current rules arose due to the lack of funds to the budget. Unscrupulous sellers, in particular car dealers, indicated significantly lower prices for cars, far from real figures. The adopted resolution will increase revenue to the state budget hundreds of times, amounting to billions of hryvnias," said the Head of the Main Service Center of the Ministry of Internal Affairs of Ukraine.
As of August 2024, there are about 3,500 entities operating in Ukraine that carry out wholesale and retail trade in vehicles. About 1,200 of them are trade organizations that carry out commission sales.
In total, since December 2022, more than 1,000 economic entities have been blocked in Ukraine, which have violated the Trade Rules.
How will the service centers of the Ministry of Internal Affairs monitor compliance with the new rules?
As Mykola Rudyk said, the registry is currently being refined in order to make it impossible to sell vehicles that violate the norms stipulated by the resolution. Cooperation with the State Property Fund and the State Tax Service of Ukraine is also underway in this matter.
"In the event that the undervalued value of the car is indicated in the sales contract drawn up in the trade organization, the employee of the service center of the Ministry of Internal Affairs will refuse to provide the service. The materials will be sent to law enforcement agencies, the tax service and the State Property Fund for making appropriate decisions and clarifying the circumstances," added the Head of the Main Service Center of the Ministry of Internal Affairs.
Where can I get information about the new requirements?
On the website of the Main Service Center of the Ministry of Internal Affairs, information will be posted on the evaluation of the value of the car, in which cases it should be carried out and which authorities to contact for this.
"I would like to remind you that the evaluation of the value is done by the Expert of the Ministry of Internal Affairs and authorized subjects of evaluation activity. Also, after the official publication of the resolution, it is planned to publish thematic materials with explanations of the changes on the website of the Main Service Center of the Ministry of Internal Affairs and on official pages in social networks," Mykola Rudyk said.
How does the Expert Service of the Ministry of Internal Affairs determine the "market value" of a car?
"Experts who evaluate automobiles use the "Bulletin of the Auto Commodity Expert" - an official periodic supplement to the "Methodology of Commodity Expertise and Valuation of Wheeled Vehicles", which is updated every 2 months. Based on the data specified in it, after applying the coefficients of increase or decrease in value - it depends on the mileage, conditions of care, storage, operation, technical condition, completeness, presence or absence of damage, etc. - the expert determines the "market value", which is indicated in the document on the evaluation of the car", - said the Director of the DNDEKC of the Ministry of Internal Affairs - the head of the Expert Service of the Ministry of Internal Affairs Serhii Krymchuk.
As Serhii Krymchuk noted, during the registration of the vehicle, the car owner, in addition to the vehicle evaluation service, can receive another important service from the Expert Service of the Ministry of Internal Affairs: "Forensic examination of the vehicle and the registration documents accompanying it. Obtaining this service guarantees the prevention of violation of the property rights of citizens, excludes the possibility of purchasing a vehicle with forged unit numbers, a "double car", etc., and as a result - being left without a car and without money. By turning to specialized institutions and ordering such studies, citizens first of all protect their own peace of mind."
