Ukraine’s customs and excise policy for vehicle imports remains complex and inconsistent. Over the years, approaches have varied—from high taxes limiting car imports from Europe to the removal of excise duties on certain vehicles after the full-scale war began. Meanwhile, electric vehicles (EVs) have been imported duty and VAT free since 2018.
This issue became topical again in 2025. In the first nine months of 2025, 55,000 EVs were imported, exceeding the total for the previous year. Tax benefit amounts reached 2 billion UAH in September alone, with annual budget losses from benefits forecast at up to 30 billion UAH.
China, as the largest supplier, now controls over 90% of the new EV market in Ukraine. Currency outflows are significant: in the first eight months of 2025, imports from China exceeded $11 billion, while exports amounted to just $1.2 billion. This trade imbalance is compounded by the tax breaks.
Parliament backed an amendment to extend EV import benefits in a first reading. Opponents say equal tax conditions for all vehicles—20% VAT and 10% import duty—would support the budget, reduce the tax burden on productive sectors, and help balance trade. A final decision on benefits is expected by late November 2025.
The debate continues: proponents argue for import liberalization, while opponents emphasize fiscal stability, unified rules, and avoidance of selective preferences (notably for Chinese imports). The fate of EV import benefits and their impact on Ukraine’s economy remains unresolved.
