Trade-in can become the locomotive of the car market of Ukraine

Tax Code, which, in addition unpleasant innovations for small private businesses, and contains some positive provisions. In particular, the code actually legalized in Ukraine is widely practiced throughout the civilized world sales system trade-in. This writes Artem Svyatnenko in the latest issue of the "Mirror of the week. Ukraine. Service trade-in - the netting system, in which the used car dealership client is accepted as partial payment for a new car. But realistically, before the enactment of the Tax Code has officially run by the scheme trade-in was uninteresting and car dealerships and their customers. The main problem was the need to pay VAT on the full cost of the car. In addition, the tax rate on income of individuals in the sale of cars through the dealer was 15% of its value, payment of which the client was to control the motor show as a tax agent. "As a result, trade-in services as such did not exist in Ukraine," - the author notes. The new tax code has decided two major problems hindering the development of trade-in in Ukraine. In particular, now the company who carry out retail sale of automobiles, the implementation of such vehicles would pay VAT only on the difference derived from the purchase and sale of the car, that is with profits. In addition, the tax rate on income of individuals is set at 1% of the cost of cars in the sale of one car per year and 5% - for the implementation of more than one car per year. Car dealer gets the right to independently without the involvement of the notary as a tax agent to control the payment of individual 1% tax on the car's cost and give him a certificate account. "Apparently, the civilized format of trade-in will revive salon sales and marketing of new cars. According to market participants, about 10-15% of current car owners who want to buy a new car, the availability and cost of legal services to trade-in push to buy in salons. Especially great potential for vehicle sales of three-, five years ago. Given that the automobile boom in the segment of new cars in Ukraine took place in 2003-2008, the company may well earn a secondary resale of these vehicles. Automotive experts argue that the potential dealers already now able to implement the system of trade-in up to 30% of cars, whereas in the past year with the help of this tool stores sold on the strength of 5%, "- the author notes. "As the Russian experience, the official market has seen a doubling of sales in the first year after passage of a law legalizing trade-in. Now, every fourth car in Moscow is sold under the scheme. Rather, the Ukrainian results of introducing a system of trade-in will be close to the Russian "- says the article. Read more in the article, Artem Svyatnenko "Trade-in: out of the shadows" in the latest issue of The Mirror of the week. Ukraine.