VAT has been refunded—prices have risen: what’s happening in the electric car market
28 April 13:52
EXPERT
As of January 1, 2026, Ukraine has abolished VAT exemptions on the import of electric vehicles. This has already affected the cost of “green” cars at dealerships and on the used car market. This was reported in an exclusive comment
Since the beginning of 2026, the tax exemption for electric vehicles has ceased to apply in Ukraine—the standard VAT rate of 20% now applies to them again. This means that when importing electric cars, one must pay value-added tax based on the car’s customs value.
How the VAT repeal has affected electric vehicle prices
Oleg Nazarenko explains that there are currently no specific, comprehensive statistics on changes in electric car prices.
“There are no specific statistics. Today, there are three categories of car prices: cars imported before January 1 for which importers did not raise prices; cars imported before January 1 for which importers still raised prices because of demand; and the third category consists of cars imported after January 1,” noted Oleg Nazarenko.
According to him, price increases are natural for cars imported after the tax exemption was abolished, since value-added tax is added to the cost.
“This is no longer a matter of importers’ whims or desires. Here, of course, VAT has been added to the cost of the car, meaning prices have risen by 20%. This is entirely natural,” explained the association’s director.
Three price categories for electric cars
After the tax breaks were abolished, the electric vehicle market in Ukraine became heterogeneous. The same or a similar car can have a different price depending on when it was imported into the country and what pricing policy the seller chose.
1. Electric vehicles imported before January 1, with no price increase
These are cars that importers brought in while tax incentives were still in effect. Some companies have not adjusted their prices and are selling these cars under the old terms.
For buyers, this may be the most cost-effective option, but the number of such cars will gradually decrease.
2. Electric vehicles imported before January 1, but now at a higher price
The second category consists of cars that were also imported before the tax breaks were repealed, but sellers raised their prices due to demand.
In fact, these cars should not automatically become more expensive due to VAT, since they were imported earlier. But the market reacts to demand, buyer expectations, and the overall shift in the pricing environment.
3. Electric vehicles imported after January 1
This category has been most affected by the rule changes. Following the elimination of tax breaks, a 20% VAT is added to the cost of electric vehicles.
This means that new batches of electric cars imported as early as 2026 will objectively become more expensive for the end buyer.
READ ALSO: Parliament Discusses New Tax for Electric Car Owners: What We Know
Is there a conspiracy among importers?
Oleg Nazarenko emphasizes: there is no basis for talking about a corporate conspiracy among importers, as companies compete with one another.
“There is absolutely no corporate conspiracy among importers. Because importers are competitors,” he stressed.
According to him, competition should curb excessive price increases. If one seller raises prices too much, buyers may go to another seller who offers a better price.
“It’s clear that some will raise prices, while others will lower them or raise them less than others, and people will buy from those sellers,” Nazarenko noted.
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Why buyers can benefit from competition
Despite the elimination of the tax break, the expert believes that competition among importers will benefit Ukrainian buyers.
“Ukrainians will only benefit from this competitive struggle, because those who raise prices will be left with their inventory, while those who lower prices will sell their products. Consequently, their turnover will grow, and they will earn more,” explained Oleg Nazarenko.
In other words, sellers are forced to balance the desire to offset the tax burden with the need to remain competitive in the market.
What’s happening with the electric vehicle market in Ukraine
As reported by
After the peak in December 2025, when importers brought in electric cars en masse ahead of the VAT reinstatement, January statistics show nearly empty customs offices:
Used electric vehicles — imports fell by 94.5%, to 1,374 cars.
New electric cars — a drop of 85.2%, to 864 units.
In the first quarter of 2026, 5,968 electric passenger cars were added to Ukraine’s vehicle fleet .
The Lviv region, Kyiv, the Kyiv region, the Volyn region, and the Dnipropetrovsk region showed the highest market activity. These regions led in the number of electric vehicle registrations, and the main demand, as before, was driven by used cars from abroad.
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