The State Tax Service of Ukraine provided clarification on the payment of the transport tax in 2020. Indeed, those drivers who have cars from the list published on the official website of the Ministry of Economy at the link will have to pay the tax. More details below.
Who must pay transport tax
The list on the Ministry of Economy's website contains the following information: brand, model, year of manufacture, engine cylinder capacity, fuel type. In 2020, the following car brands have been listed: AstonMartin, Audi, Bentley, BMW, Cadillac, Chevrolet, Dodge, Ferrari, Ford, GMC, Lamborghini, LandRover, Lexus, Lincoln, Maserati, Mclaren, Mercedes-Benz, Polestar, Porsche, RezvaniBeast, Rolls-Royce, Tesla, Toyota.
According to subitems 267.1.1, item 267.1 of Art. 267 of the Tax Code of Ukraine (hereinafter – TCU), payers are natural and legal persons, including non-residents, who have their own passenger cars registered in Ukraine under the current legislation.
What cars are taxed
The subject of taxation are passenger cars, with the issue date which has passed not more than five years (inclusive) and the average market value of which is more than 375 amounts of the minimum wage, established by law as of January 1 of the tax (reporting) year (4 723 UAH), that is 1 771 125 UAH in 2020.
How to set the average market value of a car
The mechanism for determining the average market value of cars was established by resolution of the Cabinet of Ministers of Ukraine “On approval of the Methodology for determining the average market value of passenger cars and amending annexes 1 and 2 to the Procedure for determining the average market value of passenger cars, motorcycles and mopeds” No. 66.
Tax rate and payment procedure
The tax rate is set at the rate of 25 thousand UAH per calendar year for each passenger car. The calculation of the amount of tax from the object/objects of taxation of individuals is carried out by the controlling body at the place of registration of the taxpayer.
The taxpayer must pay the tax within 60 days from the date of receipt of the tax notification-decision, which is sent (served) at the place of registration.
Liability for tax evasion
If the taxpayer fails to pay the agreed amount of the monetary obligation within the time limits specified by the TCU, the payer must be liable to a fine in the following amounts:
- in the event of a delay of up to 30 calendar days inclusive, following the last day of the term of payment of the amount of the monetary obligation, in the amount of 10% of the repaid amount of the tax debt;
- in case of delay of more than 30 calendar days following the last day of payment of the amount of the monetary obligation, in the amount of 20% of the repaid amount of the tax debt.
At the same time, it is envisaged that starting from the first working day following the last day of the deadline for payment of the tax liability (including during the period of administrative and/or judicial appeal), the accrual of the penalty begins (subitem 129.1.2, item 129.1, Art. 129 of the TCU).
