Ukraine has clear taxation rules of transactions involving sale or exchange of passenger cars. This is stipulated in Article 173 of the Tax Code of Ukraine.

Particularly, it is stipulated that if an individual sells or exchanges one passenger car, motorcycle or moped during the year, such income is not taxable. In the absence of other income subject to obligatory taxation, annual property status and income tax declaration is required.

However, in the case of sale of second passenger car during the same year, income from such transaction is already subject to the 5% tax rate.

If a person sells third and each subsequent car, the tax rate is 18%.

Also, such income is subject to military levy at the 5% rate.

Income from the sale or exchange of passenger car, motorcycle, moped is determined based on the price specified in the purchase and sale contract (or exchange), but not lower than average market value of such car or not lower than its estimated, market value (at the taxpayer’s choice).  

As follows, Ukrainians can sell car once a year without tax consequences, but each subsequent transaction is already subject to taxation.