According to Experts Club, electric vehicles in Ukraine will remain more cost-effective than internal combustion engine vehicles even after full taxation on their import is restored, says Serhiy Kuyun, director of the “A-95” Consulting Group.
According to Enkorr, a 20% VAT is set to be reinstated on electric vehicle imports into Ukraine starting January 1, 2027. Meanwhile, the preferential regime in effect until the end of 2026 exempts electric vehicles from VAT and import duties.
According to Kuyun’s assessment, the elimination of this exemption will make electric vehicles more expensive to purchase, but it will not deprive them of their main advantage—significantly lower operating costs.
“Even with all taxes included, an electric vehicle remains cost-effective. The electricity needed to charge it is significantly cheaper than fuel for a vehicle with an internal combustion engine,” the expert notes.
The savings on operating costs are particularly noticeable with high annual mileage. If an electric vehicle consumes about 15–20 kWh of electricity per 100 km, then when charged at home, the cost of such a trip remains several times lower than the cost of gasoline or diesel fuel for a vehicle of a similar class.
An additional advantage of electric vehicles is the simpler design of their powertrain. They lack a number of components and consumables typical of vehicles with internal combustion engines, which potentially reduces the cost of regular maintenance.
According to Kuyun, the Ukrainian market has already reached a stage of development where tax incentives are no longer the main driver of demand for electric vehicles. In recent years, the model lineup has expanded significantly, the used-car market has grown, and the charging station infrastructure is developing.
At the same time, the reinstatement of the VAT could have a noticeable impact on the market immediately before the end of the tax incentive period. Buyers planning to purchase an electric vehicle may try to import and register it by the end of 2026 to take advantage of the current tax incentives.
As a result, electric vehicle imports may accelerate further in the final months of 2026, after which the market may undergo a correction period in early 2027.
For comparison: with a customs value of 20,000 euros for an electric vehicle, the 20% VAT refund alone potentially increases the tax component by approximately 4,000 euros, without taking into account the specifics of determining the tax base and other payments. However, for an owner with high annual mileage, part of this difference is gradually offset by lower energy and maintenance costs.
Analysts at Experts Club note that the future dynamics of the Ukrainian electric vehicle market will no longer depend solely on tax incentives. The cost of electricity and automotive fuel, the development of charging infrastructure, prices for new and used electric vehicles, the condition of batteries, and the residual value of vehicles on the secondary market will become increasingly important.
Therefore, the reinstatement of full taxation may alter the structure of imports and slow the market’s growth rate; however, it does not, in and of itself, eliminate the economic advantages of electric vehicles for a significant portion of drivers.
Original source: Enkorr – “Electric Vehicles Will Remain Cost-Effective Even With All Taxes — Expert”.
The volume of passenger car imports to Ukraine, including cargo-passenger vans and race cars (UKT ZED code 8703), amounted to $2.62 billion in January–July 2026, which is 17% less than the figure for the same period in 2025 ($3.16 billion).
According to statistics released by the State Customs Service of Ukraine, in July alone, passenger car imports fell by 27.2% compared to July of last year—to $443.2 million, which is also 5.3% less than in June 2026.
The top three suppliers of passenger cars to Ukraine over the first seven months have consistently been the United States, Germany, and Japan, whereas in the previous year they were Germany, the United States, and China. Specifically, car shipments from the U.S. fell by 3.2% to $508.3 million, those from Germany decreased by 26% to $416.2 million, and imports from Japan totaled $371.2 million, whereas last year, cars worth $407.7 million were imported from China.
Imports of passenger cars from other countries during this period totaled $1.33 billion—20.4% less than last year’s figure.
At the same time, over the seven-month period, Ukraine exported only $2 million worth of such vehicles, primarily to Georgia, the Czech Republic, and Kazakhstan, whereas last year, total exports to the UAE, the Czech Republic, and Poland amounted to $4.54 million.
Passenger cars accounted for 4.52% of Ukraine’s total imports of goods in January–July, compared to 6.89% during the same period last year; their share of total exports was 0.01% and 0.02%, respectively.
As previously reported, in 2025, passenger cars worth nearly $6.15 billion were imported into Ukraine, which is 40.2% more than in 2024. The top three exporters were the United States, Germany, and China. Car exports totaled $10.1 million (2.7 times less).
The significant increase in passenger car imports to Ukraine starting in the summer of 2025 was driven by news that VAT exemptions on electric vehicle imports would be abolished as of January 1, 2026; as a result, imports have declined significantly since the beginning of this year. However, starting in March, a slow but steady recovery of the passenger car market—including electric vehicles—began.
In July 2026, Ukrainians purchased 22,600 used passenger cars imported from abroad, which is 1% more than during the same period in 2025, according to a report by “Ukravtoprom” on its Telegram channel.
Gasoline-powered cars accounted for the largest share of this segment of the auto market, increasing their share by 7 percentage points compared to July 2025—to 55%.
Next came diesel cars at 17% (19%), while the share of electric vehicles fell to 15% from 24%, though they still outpaced hybrids, which accounted for 10% (6%). The share of cars with LPG systems remained unchanged at 3%.
The average age of imported used cars was 8.8 years.
The Volkswagen Tiguan confidently tops the list of the ten most popular imported used models with 937 units. It is followed by the VW Golf with 862 units, the Audi Q5 with 803 units, the Nissan Rogue with 799 units, the Skoda Octavia with 661 units, the Renault Megane with 618 units, the Tesla Model Y with 509 units, the Ford Escape with 465 units, the Tesla
Model 3 with 456 units, and the Mazda CX-5 with 432 units.
As reported with reference to “Ukravtoprom,” in 2025 Ukrainians purchased 274,300 used passenger cars imported from abroad, which is 24% more than in 2024, and the top three most popular models after the Volkswagen Golf included two Tesla electric vehicles—the Model Y and Model 3.
Ukraine is beginning to implement mandatory IMEI declaration for mobile phones upon import; the relevant order has already been signed by the Ministry of Finance, according to Artem Shevchenko, CEO of “Citrus.”
“In my view, this is the most important decision for the Ukrainian mobile phone market in recent years. The order has already been signed by the Ministry of Finance of Ukraine and registered by the Ministry of Justice of Ukraine. This means that the decision has already been made and the practical implementation phase is beginning,” he said on LinkedIn.
Shevchenko added that, according to estimates by the Bureau of Economic Security (BES), this change in regulations could generate over 5 billion UAH in additional revenue for the state budget annually and significantly reduce opportunities for “gray market” smartphone imports. The “Citrus” team actively participated in consultations with the EBS regarding this initiative, discussing the technical aspects of implementation and mechanisms that will help make the new system as effective as possible.
Until now, the IMEI was not specified during customs clearance, which meant the state was unable to track the path of a specific mobile phone from the moment of its import to its sale to the end consumer.
“Now the foundation for such a system has been laid. The first stage is mandatory IMEI declaration upon import. The next step should be to include the IMEI on the fiscal receipt. The BEB is already working on this mechanism in collaboration with the Ministry of Finance of Ukraine and the State Tax Service of Ukraine. In effect, this means that every mobile phone will have a traceable path from the moment it crosses the border until it is sold. “Once this mechanism is fully implemented, the legal sale of mobile phones without a match between the IMEI declared at the time of import and the IMEI indicated on the fiscal receipt will become virtually impossible,” Shevchenko said.
The government has once again approved and submitted to the Verkhovna Rada a bill introducing value-added tax (VAT) on international postal shipments to Ukraine valued at up to 150 euros, Prime Minister Serhiy Koretskyi announced on Telegram on Wednesday evening.
“We must create a level playing field for all market participants. This is a matter of supporting Ukrainian manufacturers and ensuring fair competition. We expect this decision to generate over 10 billion hryvnias in additional budget revenue each year,” he noted.
The prime minister emphasized that Ukrainian manufacturers and sellers pay VAT, while some imported goods enjoy tax breaks.
“It is unacceptable that Ukrainian manufacturers—for example, in the light industry—pay taxes, while citizens buy clothing on foreign marketplaces, and those same goods are not taxed at all. It is equally unacceptable that a number of unscrupulous players split up their shipments to evade paying taxes,” the head of government stated.
Koretsky also noted that the repeal of the current exemption will bring Ukrainian regulations into line with European Union legislation.
“Importantly, personal gifts valued at up to 45 euros that are sent free of charge will, as before, remain tax-exempt,” the prime minister added.
According to him, if lawmakers support this decision, the new rules will take effect in 2027, giving businesses, marketplaces, and delivery operators time to prepare.
Separately, Koretsky instructed the Ministry of Finance and all relevant agencies to thoroughly discuss this issue with lawmakers at the committee level and with representatives of all factions and groups, as well as to explain in detail to the public the provisions of the bill and the need for its adoption.
As previously reported, the Verkhovna Rada’s adoption of the bill to abolish the tax exemption for international parcels valued at up to 150 euros is a condition for Ukraine to receive the third tranche under the program with the International Monetary Fund in the amount of approximately 0. 7 billion, and the second tranche of macro-financial assistance from the
European Union in the amount of 3.7 billion euros as part of a 90 billion euro loan to support Ukraine.
In the updated Memorandum on Financial and Economic Policies under the IMF’s EFF program, Ukraine committed to adopting this law by the end of July as a new structural benchmark, whereas the original version required its approval by the end of March along with other tax regulations; however, that structural benchmark was not met.
According to Open4business, the United States retained its status as the largest supplier of imported passenger cars to Ukraine in the first half of 2026, accounting for 43% of the total number of imported cars. According to data from the State Customs Service published on July 28, 73,200 passenger cars were imported from the U.S. to Ukraine between January and June.
Germany ranked second among supplier countries, accounting for 17,300 cars, or 10% of total imports. Poland ranked third with 14,600 cars, or 9%.
Collectively, the United States, Germany, and Poland supplied 105,100 passenger cars to Ukraine. These three countries accounted for about 62% of total imports.
Overall, in the first half of the year, cars were imported from more than 50 countries. The total volume of imports exceeded 169,000 vehicles, and their declared value amounted to nearly 96.6 billion UAH.
Customs revenues from passenger car imports reached 32.1 billion UAH.
According to estimates by the Experts Club analytical center, gasoline-powered cars led in terms of customs revenue. They contributed 14.6 billion UAH to the budget, or 45.5% of the total.
Diesel cars generated 8.4 billion UAH, hybrids—7.1 billion UAH, and electric cars—about 2 billion UAH.
Used cars accounted for over 70% of the total number of imported vehicles and generated 17.7 billion UAH in customs duties. New cars accounted for less than 30% of imports and 14.4 billion UAH in revenue.
