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 There is not much time left until the deadline for the legal entity to file a transport tax return, which must be completed in 2020. Begin with the law, which was adopted on the basis of bill No. 1210. The new law contains, inter alia, information on the payment of transport taxes. What has changed in the payment rules? What innovations have affected legal entities? Read the article.

 Legislative changes

 Perhaps the main innovation that should be mentioned was the extension of the deadline for filing a transport tax declaration for 1 day. If before that the deadline was February 19, then in 2020 legal entities can submit a declaration until February 20 inclusive. Otherwise, there were no fundamental changes in the rules for providing this document.

 This year, both legal entities and individuals who own “object-type” cars must pay transport taxes. If the owner is an individual, it is enough to get a tax calculation and a corresponding tax notice before July 1 of the current reporting year.

 Taxation for legal entities

 In more detail it is worth considering the situation with the payment of vehicle tax for legal entities. The obligation to pay rests only with the owners of “object” cars. If a legal entity rents a vehicle, then there is no need to pay tax. In this case, it is the responsibility of the owner of the car.

 Important! It is cars that fall under taxation. More details about this category of vehicles and tax assessment are set forth in article 1 of the law “On Road Transport” dated 05.04.2001, No. 2344 — III.

 Auto tax must be paid if you own a vehicle that meets a number of criteria:

  • year of manufacture of the car no earlier than 2015;
  • the average market price of a car exceeds 375 minimum wages (in 2020 – more than 1,771,125 UAH). 

 To find out the production date of your vehicle, just look at the technical documentation or the contract that you entered into at the time of purchase. If the car was released more than five years ago, the tax on cars in 2020 is not paid for the whole year, but only for the period from January 1 to the date when the age of the car reaches 5 years. That is, if the five-year period from the date of issue is reached in June, you just have to pay the tax on the car for 6 months (from January to June). Read more in p.p. 267.6.7 GCC.

 As for the average market value, the responsibility for its calculation lies with the Ministry of Economy of Ukraine. For calculation, the average price is taken at the beginning of the current year. In this case, parameters such as:

  • mark;
  • model;
  • release date;
  • engine capacity;
  • type of fuel.

 Attention! If your car is an object of taxation, then for the independent calculation of the approximate cost it is enough to multiply the established tax rate (25 000 UAH) by the number of similar passenger cars that have been produced over the past five years. As a result, get the total annual transport tax amount of 2020.

 Taxation for new car owners

 If you decide to purchase a car in 2020, the tax is paid from the moment you became the owner of the car, that is, from the month of registration. To calculate the total amount in this case, we are guided by the formula: 25 000 UAH. x 12 months x number of months during which the vehicle is in your possession.

 It is necessary to submit a declaration within 30 days from the date of registration of ownership of the car (for more details, see paragraphs 267.6.4, 267.6.6 of the Tax Code). In this case, the previous owner is obliged to fully pay the tax before the start of the month in which the vehicle was sold.

 The declaration is filed in the old form, approved by Order of the Ministry of Finance of April 10, 2015 No. 415. The tax amount must be paid at the place of registration of the car.

Author: Kristina Vorozhbitova

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