VAT on electric vehicles in 2026: prices, customs clearance and market forecast in Ukraine

VAT on electric vehicles has returned in Ukraine from January 1, 2026. Find out how this will affect prices, customs clearance, imports and the electric car market

Get your car insurance at Visit Ukraine - guaranteed protection on the road in just 5 minutes!

BUY

From January 1, 2026, a general taxation regime for electric vehicles will be in effect in Ukraine again: when importing and selling “green” cars, value added tax will be charged at a standard rate of 20%. This decision caused a lively discussion among drivers and importers, but it did not come as a surprise to the market itself.

According to Stanislav Buchatsky, head of the Institute for Automotive Market Research, the price reaction began back in the summer of 2025 - it was then that it became clear that the preferential VAT regime would not be continued. Therefore, most of the changes were already built into prices before the beginning of 2026.

We will tell you about the main changes for drivers after the VAT refund on electric vehicles in this article.

Also read what models of electric vehicles are chosen most often and from which countries Ukrainians prefer to order such cars.

Why didn’t the prices for electric vehicles immediately soar by 20% after the VAT refund?

Formal VAT refund is only part of the overall picture. As of the beginning of 2026, both new and used electric cars actually already “contained” this additional 20% in their value.

Another factor had a much stronger impact on the market – the imbalance between demand and supply, which formed at the end of 2025. In December alone, more than 30 thousand electric cars were imported to Ukraine, which became an absolute record for the domestic car market. This volume significantly exceeded the real needs of buyers.

As a result, at the beginning of 2026, the market received an excess of supply. That is why, according to experts, prices will fluctuate for 3-6 months: some sellers will reduce the cost in order to sell cars faster, others will wait for stabilization. More predictable pricing is expected closer to March-April 2026.

How much does customs clearance of an electric car cost in 2026?

A common myth is that since January 1, electric cars have returned to “full” customs clearance. In fact, the changes affected only VAT. All other customs payments remained among the lowest among all categories of cars.

Current structure of payments for customs clearance of an electric car in Ukraine in 2026

- VAT – 20% of the customs value;

- Import duty – 0% for electric cars (with an exclusively electric engine, not hybrids);

- Excise duty – minimal: 1 euro per 1 kWh of battery capacity (usually 30–100 euros);

- Fee to the Pension Fund upon first registration – not paid.

Thus, even after the VAT refund, electric cars remain the most loyal category in terms of import taxation, when compared to cars with internal combustion engines or hybrids.

Don't want to miss important updates and useful articles? Subscribe to our weekly newsletter!

What does “+20%” to the cost of an electric car mean in practice?

If an electric car abroad costs $10,000, previously only excise duty and registration costs were actually paid during import. In 2026, $2,000 of VAT will be added to this amount.

At the same time, it is important to consider that VAT is charged on the customs value, which includes not only the price of the car, but also documented delivery costs. For some cars, especially from Europe, the customs value may be determined according to customs methods - and then the actual price increase may be greater than the formal 20%.

Demand for Chinese electric cars in Ukraine is growing at a record pace. Find out in this article why Ukrainians are massively switching to Chinese electric cars.

Statistics of electric cars imported into Ukraine in 2025 and forecast for 2026

According to the Institute of Automotive Market Research in 2025:

- 84 thousand used electric cars were imported into Ukraine, of which more than 30 thousand were imported in December;

- The number of new electric cars was 22 thousand;

- The total fleet of electric cars in Ukraine exceeded 250 thousand cars;

- The share of electric cars in the fleet is estimated at 2–4%.

The forecast for 2026 is modest:

- In the first half of the year, a drop in imports by 20–40% is expected due to a surplus of cars;

- From the middle of the year, stabilization and a return to average market indicators.

The VAT refund is noticeable for buyers, but not critical for the segment itself. The market has started adapting in advance, and electric cars continue to be the most profitable in terms of total import payments.

In addition, the decrease in demand from Ukraine may put pressure on prices abroad, which partially compensates for the tax burden for the end buyer. At the same time, experts emphasize: VAT refunds should not affect the prices of cars with internal combustion engines, because these are different segments with different import and demand economies.

At the same time, it is worth considering that regardless of the type of engine, each car needs mandatory financial protection on the road. Motor third party liability insurance (MTPL) is mandatory civil liability insurance for all vehicles, including electric cars. In the event of an accident due to your fault, the policy covers damage caused to other road users - their cars, property or health.

It is important to understand that MTPL does not cover the repair of your electric car and does not compensate for the driver's personal losses. However, it protects against significant financial costs that may arise due to damage to third parties, and given the cost of the car and spare parts, such amounts can be significant.

Driving a car without a valid motor vehicle registration certificate threatens with fines and serious financial consequences in the event of an accident.

Apply for a motor vehicle registration certificate online in a few minutes and take care of the basic financial security of your electric car today.

Read about the nuances that you should know when applying for a motor vehicle registration certificate for electric cars in this article.

Let us remind you! The issue of the cost of registering an electric car is of concern to more and more Ukrainians. In particular, is it necessary to pay a pension fee when buying an electric car, and how the rules are changing in 2025–2026. Official explanations of the Ministry of Internal Affairs and current tax regulations at the link.

Photo – Freepik

Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.

We recommend purchasing it for a safe and comfortable trip to Ukraine: 

Visit Ukraine Insurance – insurance covering military risks for entry and travel in Ukraine;

Visit Ukraine Car Insurance – car insurance with extended coverage in Ukraine;

Visit Ukraine Legal Advice – comprehensive legal support on entry to Ukraine;

Visit Ukraine Tickets – bus and train tickets to/from Ukraine;

Visit Ukraine Tours – the largest online database of tours to Ukraine for every taste;

Visit Ukraine Hotels – hotels for a comfortable stay in Ukraine;

Visit Ukraine Merch – patriotic clothing and accessories with worldwide delivery.

© 2018-2026, Visit Ukraine. Use, copying or reprinting of materials on this site is permitted only with a link (hyperlink for online publications) to Visit Ukraine.

All rights reserved.