Verkhovna Rada Committee on Taxation and Customs Policy recommends that Verkhovna Rada adopt as a basis and as a whole draft law "On amendments to Tax Code of Ukraine concerning promotion of development of used goods market"

Information Department
16 December 2015, 10:47




During the meeting of the Committee, it was noted that the purpose of the draft law No.3046 is promoting development of the used goods market in Ukraine, in particular automobile market, taking it out of the shadows, ensuring transparent, competitive, profitable business environment for official enterprises of the automobile industry and securing stable additional revenues into the state budget.
The draft law proposes to make amendments to the order of taxation with the value added tax of operations engaging used goods supply, particularly vehicles, and to bring legislation in the field of taxation of operations with used goods in line with the norms of the European Union countries.
The document, in particular, proposes:
- To ensure transparency in the interpretation of the concept of used goods (especially concerning vehicles);
- To withdraw the concept of uniformity for the purposes of Article 189 of the Tax Code of Ukraine;
- To introduce a fair application of VAT to operations in the used goods market (including used vehicles), which means taxation of marginal income that is the difference between the selling price and the documented price of the used commodity purchase;
- To expand the range of entities that may be involved in the operations of purchase/sale of used goods with application of a special rule for determining the taxable base in accordance with Paragraph 2, Item 189.3, Article 189 of the Tax Code of Ukraine;
- To simplify and ensure transparency of the procedure of assessing the sale price of used goods for taxation purposes;
- To make necessary amendments to Item 189.3, Article 189 of the Tax Code of Ukraine.
The Committee believes that the adoption of the draft law will contribute to improving the procedure and raising the efficiency of the taxation system in the market of used goods, will create conditions for normal full-fledged  functioning of common in the developed countries of Europe and the world "trade-in" program on the basis of official dealers and ensure additional profitability of enterprises in crisis times.