A few days ago, the State Administration of Taxation issued an announcement on the issue of “VAT on used car businessâ€. According to the announcement, the taxpayer engaged in the second-hand car dealership business shall, in accordance with the relevant provisions of the Motor Vehicle Registration Regulations, register and transfer the used car to its own name, and then register the used car to the buyer’s name at the time of sale. The act of selling goods belonging to the "Provisional Regulations on Value-Added Tax of the People's Republic of China" shall be subject to VAT in accordance with the current regulations. According to the statistics of relevant departments, with the continuous expansion of the number of new car ownership in China, the size of the used car market is also increasing. The size of domestic used cars in the second half of this year is expected to reach 5 million. How to regulate the order of the fast-growing used car market has become an important topic of concern in the industry. Shen Rong, deputy secretary general of China Automobile Dealers Association, told reporters: "The announcement of the announcement means that the government will regulate the flow of the used car market. Most of the used car dealers used to carry out economic business. Now the country hopes that the industry will carry out more business operations. In order to have greater development. This policy should be a positive signal for the used car market." It is understood that after some taxpayers have obtained the qualification of used car dealership, the actual business model is: Although the vehicle purchase contract is signed with the seller, in fact, the transaction vehicle does not belong to the enterprise name, and the used car invoice is issued to the buyer at the time of sale. The vehicle is directly transferred by the seller to the buyer. This means that some taxpayers who have obtained the qualifications for used car dealerships do not register for the acquisition of used cars, but when they sell the used cars, they transfer directly from the seller to the buyer. This phenomenon has caused many regional tax authorities and taxpayers to have differences on how to tax. “In fact, most used car transactions in the market are done by second-hand car brokers or brokers. Since brokerage companies do not have to pay second-hand car VAT, and operating companies need to pay, so in order to reduce costs, many used car dealers The kind of 'changeable' avoids VAT, which makes the order of the used car market more disorderly, which affects the normal development of the market. After the announcement, the brokerage behavior in the used car market will gradually become economic business operations.†Shen Rong explained. On June 8, the IRS interpreted the contents of the announcement. The State Administration of Taxation believes that according to the current "Provisional Regulations on Value-Added Tax of the People's Republic of China", the provision of value-added tax on the ownership of paid transfer goods, the precondition for the taxpayer to sell used cars is to own the goods; at the same time, the "Regulations on Motor Vehicle Registration" It is clearly stipulated that the change of ownership of the vehicle must be handled. Therefore, the taxpayer will register the purchased second-hand car for transfer to his own name. After owning the ownership of the used car, the act of registering the used car to the buyer’s name when reselling is a tax on the sale of used car VAT. behavior. The State Administration of Taxation stipulates that the taxpayer is entrusted to sell the used car, and at the same time, the “trustee does not prepay the purchase price to the entrusting party; the trustee directly issues the “unified invoice for used car sales†directly to the purchaser; the trustee pays the price actually paid by the purchaser. And the value-added tax (if the agent is importing and selling goods, the amount of VAT collected by the customs) and the entrusting party to settle the payment, and the additional fee is charged, etc., other than the value-added tax, the other is deemed to be VAT. Tail Lamp,Tail Lamps,Tail Light Hana Auto Parts Co., Ltd. , http://www.zjautomirrors.com
· State Administration of Taxation: second-hand car second-time buyer pays taxes