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2024-08-23 17:21:00
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Supreme Court Practice
12.10.2017
Articles
Clients often come to Law Agency "Absolute" Limited Liability Company about appealing against tax decision notices on the accrual of transport tax liabilities. This is why we have prepared a small informative overview of the current regulations in this area.
In January 2015, amendments to the Tax Code of Ukraine on establishing a local transport tax have come into effect.
The object of taxation is a vehicle with an engine volume of 3,000 cubic centimeters, which is not older than 5 years old.
The approved tax rate is UAH 25 thousand for 1 calendar year.
In 2016-2017, the following amendments were made in the Tax Code of Ukraine:
- effective January 1, 2016, the object of taxation is vehicles that are not older than 5 years according to the data sheet and whose cost does not exceed 750 minimum wages according to the data for the reporting period;
- effective January 1, 2017, the object of taxation is vehicles, for which no more than 5 years have passed from their manufacture date according to the data sheet and whose average market value does not exceed 375 minimum wages as of January 1 of the tax (reporting) year.
The tax rate on transport has not changed (i.е. it still equals UAH 25 thousand).
Taking into account the fact that the minimum wage since January 1, 2017 increased to UAH 3,200.00, the vehicle tax must be paid by owners of vehicles with a cost of UAH 1.2 million or more.
For an independent assessment of a vehicle, it is sufficient to go to the website of the Ministry of Economic Development and Trade. A program automatically calculates the cost without considering the mileage based on the entered characteristics (the brand, the model, the year of manufacture, the engine volume, and the type of fuel).
It would seem that the order of taxation is transparent and understandable to every Ukrainian. However, the controlling bodies quite often send tax decision notices for the payment of the transport tax for 2017 to the owners of cars with a cost of less than UAH 1.2 million, thereby violating the norms of the current tax legislation, which serves as the grounds for the cancelation of such decisions.
Upon receipt of a tax decision notice, do not rush to pay the tax; first, check the cost of the vehicle in the automatic mode on the website of the Ministry of Economic Development and Trade.