Production of eco-vehicles and its component
Starting from 2021 the following tax and customs incentives are available for the producers of eco-transport and its components in Ukraine:
- temporary CIT exemption* (till 2036) for legal entities that conduct solely business activity of production and sale of electric motors, lithium-ion (lithium-polymeric) batteries, their charging devices, electric transport, transport that uses gas or biogas, tram and metro cars;
- temporary VAT exemption (till 2026) for import and sale on the territory of Ukraine of electric and transport that uses gas or biogas;
- temporary VAT and customs duty exemption (till 2031) for importing goods by the legal entities that conduct or plan to create/modernize their production for industrial production of electric vehicles, transport that uses gas or biogas, trams and metro cars.
* The amount of CIT exempt from taxation can only be used for purposes of R&D activities, creation or re-equipment of factories material and technical base and increase of the production volume.