From 2026, the import of electric vehicles will become more expensive: VAT at 20% returns

New rules for electric vehicle import in Ukraine from 2026

From January 1, 2026, new rules for importing electric vehicles will be in effect in Ukraine. In particular, the value added tax (VAT) of 20% will return, while the zero rate of import duties will remain unchanged. These changes will affect the customs clearance costs of electric cars, which may change the situation in the electric vehicle market in Ukraine.

Import privileges for electric vehicles were introduced in 2017 and came into effect on January 1, 2018. As of today, the electric vehicle fleet in Ukraine exceeds 200,000. The current end date for the VAT exemption is December 31, 2025. Currently, the import duty rate for passenger cars with electric engines is 0%. In addition, the excise tax on electric vehicles is 1 euro for every kWh of battery capacity. In 2026, customs duties are expected to be approximately 20% of the customs value of the vehicle plus several dozen euros in excise.

Impact of new rules on the electric vehicle market

Expert Stanislav Burchatsky noted that 'the VAT exemption has a deadline. For it to continue, a vote is needed.'

If the Verkhovna Rada does not extend the zero VAT rate, then from January 1, 2026, VAT of 20% will again be charged on the import of electric vehicles. Burchatsky also emphasized that 'the current record import of electric vehicles is partly formed by the expectation of the VAT return, which stimulates demand 'in anticipation''.

Another problem the market may face is the objective determination of the customs value of electric vehicles, especially from European countries. According to Burchatsky, this could pose a significant challenge for importers.

It should be noted that currently the import duty rate on electric vehicles is 0%, the excise tax is 1 euro for each kWh of battery capacity, and the Pension Fund fee upon the first registration of an electric vehicle is 0%. Changes that will take effect in 2026 may significantly impact the situation in the electric vehicle market in Ukraine.

The introduction of the new VAT on electric vehicles may lead to a decrease in demand for them, as the increase in import costs may affect the final price for consumers. This may also prompt the Verkhovna Rada to reconsider and discuss the possibility of extending favorable conditions for importers to support the development of the electric mobility market in Ukraine. In the context of global trends towards transitioning to environmentally friendly modes of transport, it is important to maintain incentives for consumers and businesses in this area.