The initiative was supported by 17 people's deputies who left their signatures under the document. The bill numbered 3046, concerning amendments to the Tax Code of Ukraine aimed at stimulating the used goods sector, was officially registered on September 7, 2015.
It is expected that VAT will be charged on the price difference or the commission fee of the intermediary selling a used car. Currently, value added tax is levied on the commission only when the dealer buys the car from a private individual. There is also a requirement that trade must be conducted only in "similar" goods. For example, all cars must belong to the same brand, year of manufacture, and meet other identical parameters. Because of this, a seller of Toyota cars was not allowed to take, say, a Nissan for sale. It is precisely this gap that bill No. 3046 aims to fix.
Currently, acting strictly according to existing norms, the dealer would be forced to pay 20% VAT on the total cost of the car. Wrong brand – pay, wrong year – also pay, and so on. Such a situation puts official dealers in a deliberately losing position compared to private resellers.
According to the parliamentarians, the adoption of this law will attract official car dealerships to work in the secondary market and increase revenues to the state treasury.
