Car Customs Clearance in Ukraine

Car customs clearance in Ukraine

Customs clearance is the customs formalisation of an imported car with payment of customs charges. The amount consists of three parts and depends on the engine, age and type of the car. Let us break down what it consists of and how to calculate it.

What car clearance consists of

When importing a passenger car, three payments are made: import duty, excise tax and VAT. They are calculated in sequence: first the duty, then the excise, and VAT is charged on the sum of the car value plus the duty and excise.

Import duty

The duty on passenger cars is ad valorem, that is a percentage of the customs value of the car. The rate is determined by the UKT ZED code. With confirmed European origin, a preference under the agreement with the EU is possible.

Excise: what it depends on

Excise is usually the largest part of the payment. It depends on three factors: engine type (petrol/diesel), engine volume and the age of the car. The larger the volume and the older the car, the higher the excise. The formula multiplies the base rate by the volume and by the age coefficient (the number of full years).

VAT

VAT is 20% and is charged on the sum of the customs value, import duty and excise. That is, the VAT base is wider than just the price of the car. Therefore the payments cannot be calculated separately — they are linked.

Electric vehicles and benefits

Benefits apply to electric vehicles: they are exempt from VAT and duty, and the excise is calculated at a fixed rate based on battery capacity. Benefits are extended periodically, so before importing it is important to check the current terms.

Environmental and age requirements

Besides the payments, the car must meet environmental standards. Cars that are too old with a low environmental class may be restricted from import. The car must also not be listed as stolen or under arrest.

Documents for clearance

Usually required: the technical passport of the country of export, the purchase agreement (invoice), payment documents, confirmation of the environmental class and origin documents (for a preference). The full list depends on the situation.

How to calculate

  1. Determine the customs value
    Contract price or market valuation of the car.
  2. Calculate the duty
    A percentage of the customs value by the UKT ZED code.
  3. Calculate the excise
    Base rate × engine volume × age coefficient.
  4. Calculate VAT
    20% of the sum of value, duty and excise.
  5. Add the payments
    Duty + excise + VAT = total clearance.

Car clearance for business

For legal entities and sole traders, importing a car, special machinery or commercial transport is a full foreign-trade operation with a contract, a UKT ZED code and a full customs declaration. The principle of calculating the payments is the same, but the code and rates depend on the type of vehicle. See import customs payments.

Frequently asked questions

Help with importing vehicles

Trans-Hope handles the import of commercial transport and special machinery for legal entities and sole traders: we select the UKT ZED code, calculate the payments and prepare the declaration. Send the vehicle details — we will calculate the clearance cost.