In particular, it is proposed:
Exempt from VAT
1. Temporarily, until 1 January 2026, operations on importation into the customs territory of Ukraine and supply on the customs territory of Ukraine of vehicles equipped exclusively with electric motors (one or more), classified in subheading 8701 20 (exclusively truck tractors for automobiles) semi-trailers), in commodity subcategories 8703 80 10 10, 8703 80 90 10, 8704 90 00 00 according to UKT FEA (including those produced in Ukraine). That is both new cars and used ones.
2. Temporarily, until January 1, 2026, operations on import into the customs territory of Ukraine and on supply in the customs territory of Ukraine of new vehicles (including those manufactured in Ukraine), equipped with internal combustion engines with spark ignition, operating exclusively on compressed natural methane gases, liquefied natural gas, methane or biogas, falling within subheading 8701 20 (wheeled tractors for semi-trailers), heading 8703, passenger cars and other motor vehicles, principally for the transport of persons, including vans and vans cars), 8704 (motor vehicles for transportation of goods) according to UKT FEA.
3. Temporarily, until January 1, 2031, operations on import into the customs territory of Ukraine in the customs regime of import of goods specified in subparagraph 16 of paragraph 4 of section XXI "Final and transitional provisions" of the Customs Code of Ukraine imported by enterprises that have, create or modernize production capacity for industrial production of vehicles.
The provisions of this paragraph shall not apply to goods originating in a country recognized by the occupying State.
Exempt from income tax
Temporarily, until December 31, 2035 (inclusive):
manufacturers of electric motors intended for vehicles equipped exclusively with electric motors (one or more) in commodity positions 8603, 8701 20, 8702-8705 in accordance with UKT FEA;
manufacturers of lithium-ion (lithium-polymer) batteries designed for vehicles equipped exclusively with electric motors (one or more) in headings 8603, 8701 20, 8702-8705 in accordance with UKT FEA;
manufacturers of chargers for lithium-ion (lithium-polymer) batteries designed for vehicles equipped exclusively with electric motors (one or more) in headings 8603, 8701 20, 8702-8705 in accordance with UKT FEA;
manufacturers of vehicles equipped exclusively with electric motors (one or more), classified in headings 8701 20, 8702-8705 in accordance with UKT FEA;
manufacturers of electric vehicles, classified in heading 8603 (only self-propelled tram cars and subway cars) and/or in commodity subcategory 8605 00 00 00 (only non-self-propelled tram cars and subway cars) according to UKT FEA;
vehicles equipped with internal combustion engines with spark ignition, operating exclusively on compressed natural gas methane, liquefied natural gas methane, or biogas, classified in subheading 8701 20, headings 8702-8705 in accordance with UKT FEA.
The released funds should be used for research and development work in the field of electric transport, creation or re-equipment of material and technical base, increase in production, the introduction of the latest technologies.
In case of violation of the directions of targeted use, the taxpayer is obliged to accrue the tax liability for corporate income tax from the number of misused funds, penalties, and fines.
Exempt from import duty
Until January 1, 2031 - goods imported into the customs territory of Ukraine by enterprises that have, create or upgrade production facilities for industrial production of vehicles, according to certain codes in accordance with UKT FEA, if they are imported by enterprises for their own production: vehicles equipped exclusively by electric motors, vehicles equipped with spark-ignition internal combustion engines running exclusively on compressed natural gas methane, etc.
The relevant laws will enter into force on January 1, 2022.
