12. 11. 2026

Selling a car from 2027: the 183-day rule and new tax rates adopted by the Rada

On 11 November, the Verkhovna Rada passed law No. 16037-d amending the Tax Code. Among other things, it changes the taxation of income from selling cars, motorcycles and mopeds: the personal income tax exemption will now depend on how long the vehicle was owned by the seller. The new rules for car sales are to apply from 1 January 2027. On 12 November, the law was sent to the President for signature.

In short:

• the first sale of a car, motorcycle or moped in a year is exempt from personal income tax if the vehicle was owned for at least 183 days from the date of its state registration to the seller;
• the second sale in a year — 5% personal income tax under the same condition (at least 183 days);
• the third and subsequent sales in a year, or ownership of less than 183 days — 18% personal income tax;
• a 5% military levy is added to taxable income;
• the 183-day condition does not apply to inherited vehicles.

What is changing

Currently, the first sale of a car, motorcycle or moped within a year is tax-free regardless of how long the vehicle was owned. The law adds a condition: the exemption will apply only if the vehicle was owned by the taxpayer for at least 183 days from the date of its state registration to that person.

Rates from 2027

• First sale in a year, owned for at least 183 days — tax-free;
• second sale in a year, owned for at least 183 days — 5% personal income tax;
• third and subsequent sales in a year — 18% personal income tax;
• ownership of less than 183 days (except inherited vehicles) — 18% personal income tax even on the first sale.

A 5% military levy is also paid on income subject to personal income tax. For example, if a car is sold three months after registration, the tax burden will be 18% personal income tax + 5% military levy.

How the 183 days are counted

The period is counted from the date of state registration of the vehicle to the seller. The law refers to ownership of “at least 183 days”.

Who withholds the tax

If a party to the agreement is a legal entity or a self-employed person, it acts as a tax agent and withholds tax taking into account the order of the sale, which the seller states in the agreement or a separate statement, and the period of ownership. More about drawing up sale and purchase agreements — in our article.

VIN in the tax invoice

Separately, the law provides that from 1 January 2027, the VIN will be indicated in the tax invoice for supplies of vehicles under headings 8702–8705 of the Ukrainian classification of goods (UKT ZED).

When it takes effect

The provisions on car sales and the VIN take effect from 1 January 2027. As of 12 November, the law has been sent to the President for signature — we will update this news after it is signed and published.

FAQ

Will I have to pay tax if I sell a car six months after buying it?

If at least 183 days have passed since registration in your name and it is your first sale in the year — no. If less than 183 days — 18% personal income tax and 5% military levy.

Does the 183-day rule apply to an inherited car?

No. The 183-day condition does not apply to inherited vehicles.

When will the new rules apply?

From 1 January 2027 — after the law is signed by the President and published.

Source: card of bill No. 16037-d on the Verkhovna Rada website (in Ukrainian)