Ukraine exempts EVs from VAT

January 22, 2018 by Global Fuel Economy Initiative

Categories: Fuel Efficiency, Eastern Europe and Caucuses, In-country Tags: Electric Vehicles

GFEI in Ukraine Launch event.

Rob de Jong, Head of the Transport Unit in UNEP's Division of Technology, Industry and Economics (DTIE).

The Ukrainian Parliament has adopted a provisional exemption on value-added tax and excise tax for all electric vehicles for 2018. This regulation will be in effect on a temporary pilot basis for 2018. A more comprehensive regulation is being developed to create a sustainable environment for further development of electric mobility in Ukraine, as well as favourable conditions for investment opportunities in this market.

The announcement follows the formal launch of the Global Fuel Economy Initiative (GFEI) in Ukraine in October 2017.

During the launch, the Ministry of Infrastructure announced a 40 per cent decrease in value-added tax for electric vehicles over the next five years, among other incentives. The GFEI has actively supported the such legislation through its national partners, the International Standardization Academy and the Ministry of Infrastructure.

Ukraine has experienced steady and strong growth in electric vehicle sales. The country now has one of the strongest electrification rates in the world, with sales tripling in 2017 alone.

Rob de Jong, Head of GFEI partner UN Environment’s Air Quality and Mobility team, welcomed the news, saying “Countries that embrace electrification first will enjoy the greatest benefits. Policymakers are moving on this issue, and Ukraine is the latest example of an early adopter.”