State budget has received over UAH 6.6 billion in taxes from clearance of vehicles with foreign plate numbers

In the period from November 25, 2018 until February 14, 2019 included, citizens of Ukraine customs-cleared 106.2 thousandvehicles with foreign plate numbers that had been imported to Ukraine under the temporary import or transit mode starting from January 1, 2015 until the enactment of the new customs rules for their import.

The total state budget revenues from the customs clearance of vehicles with foreign plate numbers amountUAH6.6 billion(including UAH 0.6 billion in customs duties, UAH 1.9 billion in VAT, UAH 3.3 billion in the excise tax and UAH 0.8 billion paid voluntarily by citizens to prevent administrative prosecution for the violation of the customs rules).

This year, customs revenues of the state budget have reached UAH 4.9 billioncompared to UAH 1.0 billionplanned for 2019.

All customs revenues from the clearance of cars with foreigh plate numbers in 2019 are transferred to the Pension Fund of Ukraine.

According to paragraph 9 of the Final Provisions of the Law of Ukraine “On the State Budget of Ukraine for 2019”, customs revenues exceeding the planned figures (VAT on goods (products) imported to Ukraine, excise tax on goods (products) imported to Ukraine, import duties) that were levied for the customs clearance of vehicles imported to Ukraine under the transit or temporary import mode starting from January 1, 2015 prior to the enactment of the Law of Ukraine of November 8, 2018 “On Amendments to the Tax Code of Ukraine concerning the Taxation of Cars with the Excise Tax” are paid into the special fund of the state budget and then transferred to the Pension Fund of Ukraine to adjust the pensions.

February 22, 2019is the expiry date for the application of the preferential excise tax rate (coefficient 0.5) for the customs clearance of vehicles with foreign plate numbers. Afterwards, the owners of such cars will have to pay the standard excise tax rate.

For information:
The Law of Ukraine of November 8, 2018 “On Amendments to the Customs Code of Ukraine and Certain Other Legislative Acts of Ukraine on the Import of Vehicles to the Customs Territory of Ukraine” sets new rules for the import of vehicles by citizens. It stipulates a grace period of 180 days for citizens who imported their cars starting from January 1, 2015 prior to the enactment of this law. They have these 180 days to customs-clear their cars imported to Ukraine during the mentioned period under the temporary import or transit mode.

The Government adopted Decree No. 1077 of December 12, 2018 setting the temporary procedure for the customs clearance of vehicles for their free circulation in Ukraine.