On July 15, the Verkhovna Rada adopted in the second reading draft laws No. 3476 and No. 3477, which are aimed at stimulating the development of production of electric vehicles in Ukraine, as well as introducing incentives for their import. Robinson Patman Law Firm participated in the development of the mentioned draft laws.
Draft Law No. 3476 (‘On Amendments to the Tax Code of Ukraine and some legislative acts of Ukraine regarding the stimulation of the development of the ecological transport industry in Ukraine’) until January 1, 2031 exempts from VAT transactions on the import of goods into Ukraine by enterprises that possess, create or modernize production capacity for industrial production of electric vehicles.
Also, until December 31, 2035, manufacturers of electric cars, electric motors for electric vehicles (except for trolley buses), lithium-ion batteries, chargers are exempt from income tax.
Until January 1, 2026, transactions for the supply of new vehicles (including those made in Ukraine) equipped with spark ignition internal combustion engines operating exclusively on compressed natural gas methane, liquefied natural gas methane or biogas are exempted from VAT.
Draft Law No. 3477 (‘On Amendments to Section XXI ‘Final and Transitional Provisions’ of the Customs Code of Ukraine on Stimulating the Development of the Ecological Transport Industry in Ukraine’) until January 1, 2031, goods imported into the customs territory of Ukraine to create or modernization of facilities for the production of electric vehicles, trams and subway cars, or vehicles fueled exclusively by compressed natural gas methane, liquefied natural gas methane or biogas.
Dmytro Vidsota, Managing Partner of Robinson Patman Law Firm: ‘Draft Laws No. 3476 and No. 3477 were adopted within the framework of the >National Strategy of Ukraine for Transport Development until 2030, which involves promotion of environmental friendly transport. One of the objectives of the strategy is to create conditions for electric vehicles production in Ukraine. This strategy will create new jobs and increase the share of auto production and related industries in GDP. Ukraine has sufficient potential to become a regional leader and ‘magnet’ for attracting investments in the production of electric vehicles’.