According to the current procedure in Ukraine, business entities that buy used cars for sale to end consumers must re-register the commercial vehicles twice at the service centres of the Ministry of Internal Affairs. First, they should register the vehicle for themselves and then for the end consumer. The EBA experts note that such double registration of vehicles not only complicates the business environment but is also absent in many developed countries.<\/p>\n
Since 2010, business entities engaged in the trade of used vehicles have been deprived of the opportunity to purchase used cars for the purpose of their subsequent resale to the end consumer without state registration of such vehicles.<\/p>\n
The EBA has repeatedly drawn the attention of public authorities to the need to simplify the procedure for registration of used vehicles by trade organizations, namely, cars purchased by them for sale and having the status of goods, and submitted its proposals to the Law of Ukraine “On Road Traffic” No. 3353-XII in order to resolve the existing problem, deregulate the procedure and de-shadow the used car trade market.<\/p>\n
Recently, the Verkhovna Rada of Ukraine registered Draft Law No. 9083, which is intended to significantly improve the procedure for trading in used vehicles. Firstly, the draft law exempts business entities engaged in wholesale and retail trade in cars and registered with the Main Service Center of the Ministry of Internal Affairs from the obligation to re-register used vehicles that were purchased as goods for subsequent sale to end consumers. Secondly, the obligation to submit to the service centres of the Ministry of Internal Affairs documents with a stamp of the relevant district (city) territorial centre of manning and social support on the military registration (or deregistration) of used vehicles that were purchased as goods for their subsequent sale to end consumers. For your understanding, when you buy a car, you receive a certificate of military registration, and when you sell a car to an end user, you receive a certificate of deregistration. This leads to an additional administrative burden on business entities and excessive time, labour and money costs.<\/p>\n
According to business, simplifying the procedure for registering used vehicles by trade organizations will help to de-shadow the used car market. Thus, according to the EBA member companies, in 2021 alone, the volume of state registrations of new cars amounted to about 100 thousand units and used cars \u2013 \u00a0about 1.7 million units. In 2022, the number of registrations decreased and amounted to nearly 388.5 thousand used cars and 34 thousand new cars (according to Ukravtoprom). Given the relevant data, we can conclude that the used car market is much larger than the new car market and is extremely promising.<\/p>\n
At the same time, as reported by the business representatives, a significant part of the used car market is currently “in the shadows,” resulting in non-payment of taxes to the state budget, despite the fact that, according to their estimates, the potential of the used car market in terms of tax payment is extensive. For example, according to the EBA member companies, companies trading in new cars paid more than UAH 6 billion to the state budget of Ukraine in 2021 (with a much smaller number of transactions compared to the used car market).<\/p>\n
Therefore, the European Business Association appeals to the Chairman of the Verkhovna Rada of Ukraine Ruslan Stefanchuk, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Transport and Infrastructure Yuriy Kisel, and heads of parliamentary factions, Minister of Finance of Ukraine Sergiy Marchenko, First Vice Prime Minister of Ukraine – Minister of Economy of Ukraine Yulia Svyrydenko with a call to support draft law No. 9083, to facilitate its early consideration, deregulation and de-shadowing of the used car market!<\/p>\n","protected":false},"excerpt":{"rendered":"
According to the current procedure in Ukraine, business entities that buy used cars for sale to end consumers must re-register the commercial vehicles twice at the service centres of the Ministry of Internal Affairs. First, they should register the vehicle for themselves and then for the end consumer. The EBA experts note that such double […]<\/p>\n","protected":false},"author":23406,"featured_media":468619,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[15564,15563,15571],"tags":[],"class_list":["post-788700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lobbying-news-en","category-main-news-en","category-press-releases-en"],"_links":{"self":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/788700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/users\/23406"}],"replies":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/comments?post=788700"}],"version-history":[{"count":0,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/788700\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media\/468619"}],"wp:attachment":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media?parent=788700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/categories?post=788700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/tags?post=788700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}