Car purchase and sale agreement: key aspects and place of execution

Car purchase and sale agreement: key aspects and place of execution photo

According to the current legislation of Ukraine, a purchase and sale agreement is almost always required to re-register a car.

What is a sales contract and who needs it?

A sales contract is an agreement between a seller and a buyer, where a licensed sales organization acts as a third party. This document does not grant the buyer ownership rights, but it is a guarantee that the car will not be sold to another person within a year.

When is it necessary to draw up a purchase and sale agreement:

  • Passenger cars: mandatory for second and subsequent sales in the current year.
  • Shipping units: required for the first sale in the current year.

Important: If the buyer has not re-registered the car, all fines and liability for the accident remain with the previous owner.

Where to draw up a purchase and sale agreement?

The most convenient way to do this is at the West Auto Hub registration department, where the service center is located nearby. The presence of both parties or their authorized representatives is required to sign the contract. The registration process takes 24 hours due to verification in state registers. For convenience, the finished contract can be obtained through Nova Poshta.

Required documents for re-registration:

  • Passport of a citizen of Ukraine
  • Vehicle technical passport
  • Purchase and sale agreement

Tax aspects for the seller:

Changes to the taxation of vehicle sales transactions came into effect on December 1, 2024. The law establishes new tax rates for the sale of passenger cars and other vehicles, in particular, an increase in the military duty rate from 1.5% to 5%.

Re-registration of a vehicle

After changes Second sale of a passenger car, motorcycle, moped in a calendar year
5% income tax + 5% military levy = 10%

Third and subsequent sales of a passenger car, motorcycle, moped in a calendar year
18% income tax + 5% military levy = 23%

First and second sale of buses, trucks, special equipment in the calendar year
5% income tax + 5% military levy = 10%

Third and subsequent sales of buses, trucks, and special equipment in the calendar year
18% income tax + 5% military levy = 23%

For detailed information and consultations, please call: 080 021 20 30.