The government has refused to extend electric-car incentives: what it means for the market and buyers

Ukraine has officially ended preferential customs clearance for electric vehicles. The Cabinet of Ministers rejected the Verkhovna Rada’s proposal to extend tax incentives for the import and sale of electric vehicles for another year. The decision was driven by Ukraine’s commitments to the International Monetary Fund and the risk of reduced state budget revenues.

Why the incentives are being eliminated

According to the draft state budget for 2026, the government did not support extending the VAT exemption for electric vehicles. As a reminder, currently, no VAT is levied on the import and purchase of electric vehicles, and the excise tax amounts to just 1 euro per 1 kWh of battery capacity. These rules remain in effect until January 1, 2026.

However, the Cabinet of Ministers has indicated that extending these exemptions would lead to:

a loss of budget revenue from VAT
a breach of the terms of the memorandum with the IMF
a risk of underfunding key government programs

In the memorandum dated June 19, 2025, Ukraine committed not to expand tax incentives that could reduce the tax base.

How the Exemptions Worked Previously

The VAT exemption for electric vehicles was adopted by the Verkhovna Rada in July 2021 to encourage the transition to eco-friendly transportation and the development of charging infrastructure. As a result:

imports of electric vehicles increased significantly
the EV market became one of the fastest-growing in Europe
Ukraine moved closer to meeting European targets for reducing CO₂ emissions

How the repeal of tax breaks will affect prices

Experts predict:

Car type	Price increase following the elimination of incentives
Electric vehicles	+17–20%
Plug-in hybrids	+12–15%
Electric buses and special-purpose vehicles	+8–10%

In other words, if a car currently costs $25,000, its price could rise to approximately $29,000–30,000 once the tax credit is eliminated.

What’s happening with the electric vehicle market in Ukraine right now

In 2025, electric cars became the top-selling category among new vehicles for the first time.
Since the beginning of the year, Ukrainians have registered nearly 50,000 electric cars.
Major cities offer additional benefits:

Preferential parking
Access to public transit lanes
An expanding network of fast-charging stations

However, experts warn that rising costs could slow the market’s growth.

Conclusion

The elimination of incentives for electric vehicles is a decision linked to Ukraine’s financial obligations to the IMF.
But it could affect the affordability of electric cars and the pace of the transition to eco-friendly transportation.

Buyers who were planning to switch to electric vehicles should consider making a purchase before the end of 2025, while the incentives are still in effect.

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FAQ

We understand your concerns and strive to provide you with the utmost comfort and confidence in the car buying process. For your peace of mind, we provide the following guarantees and measures. Our managers conduct over 8 steps of a thorough vehicle inspection. This includes a video report prior to purchase. This will allow you to find out whether the car was a party to an accident, the number of owners, its service history, the reliability of the seller, etc. All data about the car is provided to the client and, only after its approval, the manager proceeds to the bidding process.

For you, we are ready to make buying a car abroad easy and reliable. We offer you a full range of services, including car selection, paperwork, transportation and customs clearance. Choose the best among new and used cars with our help. We can also help you to restore and repair the imported car.

You save an average of $5,000 or more. Exclusive models and configurations. Transparent history of car operation. With our help you get the car of your dreams in the shortest possible time and with maximum benefit.

We conclude a contract with you, in which all the terms, conditions, deadlines, milestones and payments are spelled out. After signing the contract, the conditions do not change. We inform you about each stage of transportation of your car, provide video reports. All payments are made in stages and sent to the settlement account specified in the contract.

After finding your wishes, the manager sends you several options for the car you applied for in messengers. Before starting cooperation, we sign an agreement with you on the selection of a car and ask you to make a reverse advance payment in national currency equivalent to $ 500. After clarifying and checking the car chosen by the client, we reserve it and buy it in Korea.

After signing the contract for the selection of a car, our company asks you to make a refundable advance payment of $500, which is returned in full before the car is booked. Why is it needed? The Korean market is in great demand not only in Ukraine, but also throughout the world. The best cars are very quickly "taken apart" from sites and auctions. An advance payment is necessary in order to book a car in a timely manner and get the best offer.

For now, Ukrainian ports do not accept cargo, so all our clients' vehicles arrive at the port of Constantia (Romania). Bypassing delays in queues at the border, your vehicle will arrive quickly and without delays.

Car delivery consists of the following components: preparation of export documents and booking a place on a ship (from 2 weeks), land transportation of the car across Korea to the port of departure (up to 3 days), transportation by sea to a European port (from 60 days), delivery from a European port to Ukraine (up to 10 days). In total, delivery takes from 2.5 months.

Yes, it is possible. For example, OTP Bank is ready to provide a loan for the purchase of a car even to clients without official employment - an amount of up to UAH 300,000 can be approved without a certificate of income. The bank considers alternative sources of income and the borrower's credit history. In other cases, if you have an official salary card (especially in PrivatBank), you often do not need to confirm your income - the bank already sees the receipt. In any case, Bex Auto will help you collect the optimal package of documents or get by with a minimum number of them.

As a rule, the decision is made very quickly. Our partners have made the process as efficient as possible: PrivatBank pre-approves the loan a few minutes after submitting the application - you will find out the result almost instantly. OTP Bank in most cases issues the final decision and transfers the money within one day. In general, buying a car on credit through Bex Auto usually takes 1-2 days, including choosing a car, submitting an application and signing the contract.

The conditions vary depending on the bank and the program. OTP Bank does not have a CASCO requirement at all - you save on insurance, the bank does not oblige to insure the collateral, since the loan is actually unsecured. At PrivatBank, CASCO is required as standard for new cars, but with a down payment of 20-30%, insurance is not a mandatory condition (although the bank itself advises to insure the car voluntarily). Oschadbank always requires full CASCO, since it lends new cars with collateral. Thus, the presence of mandatory CASCO depends on the selected program: if you want to avoid insurance costs, consider options with a high down payment or a loan from OTP Bank.

Yes, you can repay your car loan early at any time without any penalties. All Bex Auto partner banks – OTP, Privat and Oschad – do not charge fees for early repayment. If you have the opportunity to repay the remaining loan early (partially or in full), do so without hesitation: the overpayment will be transferred only for the actual term of use of the borrowed funds. No penalties or hidden conditions – you save on interest by repaying the debt early.

Yes, of course. Bex Auto helps you buy a used car on credit as successfully as a new one. In particular, our partner OTP Bank specializes in used car loans - there are no restrictions on the brand, year of manufacture or mileage of the car. Moreover, no collateral or CASCO is required for such transactions, which distinguishes OTP's offer from classic car loans. You can choose a car at a car lot, a car dealership or even from a private seller - the bank will give you money to buy it. We also accompany the execution of the purchase and sale transaction and registration of the car in your name. If you want to import a car from abroad, we will offer a special program for a grace period (the first months without interest) - this allows you to calmly wait for your car and not pay extra.

The South Korean market is very full of diesel cars. The most popular cars among our clients are: Hyundai Tucson, Hyundai Santa Fe, Renaut (Samsung) Koleos (QM6), Hyundai Palisade, KIA Carnival, KIA Sorento, BMW 5-Series, Mercedes-Benz GLE, Audi A6, Audi Q7, Volvo XC60, Volvo XC90. Our manager will select the best car option for you according to your wishes.

The most popular electric cars from Korea among our clients are: Hyundai Ioniq 5, KIA EV6, Hyundai Kona, KIA Niro, Hyundai Ioniq 6, KIA EV9, Chevrolet Bolt. Also, the Korean sites are full of imported cars, such as Mercedes EQC, BMW IX, Audi E-Tron, Tesla Model S and others. The biggest advantage of electric cars from Korea is that the charging ports are identical to European ones, so you can quickly charge the car in any situation without any adapters.

Yes, indeed, official dealers have a wide range of Korean cars on the Ukrainian market, but they differ from Korean ones. For example, in Korea, the trim levels are very "rich". For the price that you will buy the maximum trim level from the official dealers, in Korea it will be the basic one. And the fact that in the Korean top trim level it is impossible to even imagine... Engine modifications, for example, Hyundai Tucson in Ukraine is offered only with a 2.0 l petrol engine, or a 1.6 l hybrid, where in Korea you can choose: 1.6 turbo petrol, 2.0 diesel, 1.6 hybrid. Also in Korea, there are many cars that have factory LPG, which is very economical to operate.

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