Luxury imports do not stop: how much does a status car cost in Ukraine
5 June 2025 21:00
Since the beginning of the full-scale invasion, Ukrainians have imported luxury cars worth more than 55 billion hryvnias. Despite martial law, economic restrictions, and a drop in real incomes for most citizens, the premium car segment is showing paradoxical activity, "Komersant Ukrainian" reports, citing information from Ukrainian MP Nina Yuzhanina, which she posted on her Telegram channel.
According to the politician, she received the exact figures from the State Customs Service of Ukraine in response to her written request.
According to the information received, after February 24, 2022, 219 cars were imported into Ukraine with an average cost of approximately $280,000 each. In total, this is about $15 million for this category alone. These figures confirm that even in the face of a large-scale war, there is still a layer of Ukrainians with ultra-high income and access to capital.
The largest number of cars entered Ukraine in 2024: 4,938 cars. In 2023, slightly fewer cars crossed the border – 4852 units. And in the first year of the full-scale invasion of Ukraine by the Russian Armed Forces, citizens purchased 2,300 imported cars.
What exactly do they buy?
According to the cost structure:
- 66% of cars costing $70-100 thousand are popular models of the middle premium segment, for example, BMW X5, Audi Q7, Mercedes-Benz E-class;
- 32% – in the category of $100-200 thousand – mainly SUVs from Range Rover, Porsche, Mercedes G-class;
- 1.8% are cars for more than $200,000: Ferrari, Lamborghini, Bentley, Rolls-Royce.
Among the rare examples are Ferrari Roma, Bentley Bentayga, and even a few armored special-purpose vehicles. Some of these cars are imported from the US, UAE, Germany, and Italy, often with minimal mileage or to order.
Who buys luxury imports
The segment of luxury imported cars mainly covers the business elite, IT entrepreneurs, the political class, as well as people associated with government contracts or the defense sector. Some vehicles are registered for legal entities or third parties under a power of attorney.
The psychological factor is also important: a luxury car is a symbol of stability and status, a way to record “success” in an unstable environment. Some buyers see a car as a long-term investment or even a means of quick evacuation in case of a threat.
Why is this important?
Importing cars is not only a consumer behavior, but also a tax factor. Each such vehicle means tens and sometimes hundreds of thousands of hryvnias to the budget: customs duties, excise, and VAT. In the current environment, the state is interested in such revenues, even if it looks ambiguous from a social point of view.
Forecast for 2025-2026
It is expected that in 2025, the approach to taxation of imported luxury goods, including cars, may be revised. The parliament is already discussing options for introducing an additional tax on luxury goods, which may affect premium cars.
At the same time, demand for this segment will continue as long as income inequality, the shadow economy, and the ability to optimize taxation persist.
Read also: Tax on luxury cars: list of models to be taxed in 2025
Electric cars without VAT: how much Ukraine loses on luxury car imports and why it is a matter of debate
In 2024, more than 60 thousand electric vehicles were imported to Ukraine, of which almost 1,000 were in the premium segment. The total cost of luxury electric cars amounted to more than $90 million. This is about 20% of all luxury cars imported into the country in a year. At the same time, the state budget did not receive a single penny of import VAT, as current legislation exempts electric vehicles from this tax until the end of 2025.
This tax incentive, which was introduced to promote eco-friendly transport, is currently generating active public debate. The media, experts, and parliamentary committees are increasingly asking whether it is fair to extend the incentive if some of it is used to import luxury cars rather than mass-produced budget models
The distribution of imports in 2024 shows an interesting picture. Out of all 60 thousand electric vehicles:
- 25% had a cost of up to 10 thousand US dollars;
- 33% – from 10 to 20 thousand dollars;
- 18% – from 20 to 30 thousand dollars;
- 24% – over 30 thousand dollars.
Interestingly, it is the latter category – cars worth more than $30 thousand – that accounted for half of the total customs value of all imported electric vehicles. This means that in absolute terms, the state has lost billions of hryvnias in tax revenues, in part because the benefits are not only for those who buy affordable electric cars, but also for buyers of premium models.
According to some economists, the budget could receive at least UAH 7-10 billion in additional revenue if the VAT exemptions were canceled. At the same time, supporters of maintaining the tax incentives insist that they are still needed to stimulate the electric vehicle market, build infrastructure, and reduce dependence on imported fuel.
Opponents, on the other hand, emphasize that the unimpeded import of luxury vehicles without taxes creates an unequal playing field. This is especially noticeable against the backdrop of a war economy, when every hryvnia in the budget is worth its weight in gold.
The issue of extending or revising the benefits for the import of electric vehicles is no longer just a technical or environmental issue, but a political and economic one. The decisions taken will determine the structure of the future market and the balance of fairness to taxpayers.
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