Ukrainian President Signs Law Simplifying Used Car Trade Regulations
Ukrainian President Volodymyr Zelensky has signed a law aimed at deregulating and reducing the shadow economy in the used car market. The law relieves sellers from the obligation to reregister and register vehicles.
The legislation exempts sellers of used vehicles and their parts from the following duties:
- Reregistering used vehicles in their own names.
- Submitting documents to the МВД service centers with the appropriate district (regional) vehicle registration and inspection center mark.
The law is expected to promote transparency in the market and counteract schemes that lead to tax revenue losses for the state budget.
A reminder that on December 17, the Verkhovna Rada passed a law simplifying the process of trading used cars. A notable change is that car dealers will no longer need to register vehicles in their names during reselling.
As explained in the explanatory note to the draft law, since 2010, businesses engaged in used vehicle trading have been unable to purchase used vehicles for resale to end consumers without state registration in their own names. The process involves considering the car as a business asset rather than a commodity, leading to mandatory state registration before resale.
Consequently, sellers are currently forced to reregister vehicles in their names twice — first to themselves and then to the final consumer — resulting in additional costs and bureaucracy. The acquisition process also involves obtaining a draft report on vehicle registration and a certificate of deregistration from the military registration and enlistment office, further complicating the process.
The new regulation seeks to address these issues, streamlining the used car market and promoting formalization in the sector.
