How To Pay VAT For Sales Of Second-Hand And Old Motor Vehicles

In March 25, 2002, the Ministry of Finance and the State Administration of Taxation issued the notice on the value added tax policy of second-hand goods and old motor vehicles (Finance and tax [2002]29 number) (hereinafter referred to as No. 29).

The 29 value-added tax policy for second-hand goods and old motor vehicles has been clearly implemented since January 1, 2003.

The contents are as follows: first, taxpayers should sell vintage goods (including second-hand goods stores selling old goods and taxpayers selling the taxable fixed assets they used). Whether they are general taxpayers or small-scale taxpayers of VAT, and whether they are approved or approved for old goods dispatching pilot units, they will levy a value added tax at a rate of 4% instead of deducting the input tax.

The two is that taxpayers sell the motor vehicles, motorcycles and yachts that they have used for consumption tax. If the price exceeds the original value, the value added tax will be reduced by half according to the 4% levy rate.

The old motor vehicle business units sell half of the old motor vehicles, motorcycles and yachts, and impose a value added tax of 4% on the basis of the collection rate.

The "sales of taxable fixed assets that we have used" refers to the relevant provisions of the two detailed rules for the implementation of the Provisional Regulations on value added tax and the two notices in 1994 and 1995.

The thirty-first detailed rules for the implementation of the Provisional Regulations on value added tax, third of the first paragraph, stipulate that the scope of tax-free items refers to goods other than motor vehicles, motorcycles and excise tax cars.

(94) tenth notifications for fiscal and tax No. 026 Notifications: units and individual operators sell their own yachts, motorcycles and excise tax cars. Regardless of whether the sellers belong to the general taxpayer, they shall calculate the value added tax according to the 6% levy rate and do not issue special invoices.

Sales of other fixed assets belonging to the goods sold are temporarily exempt from VAT.

The tenth letter of the State Tax Circular No. [1995]288 provides that "the other fixed assets belonging to the goods" shall have the following conditions: (1) the goods listed in the list of fixed assets of enterprises; (two) goods that are managed by the same assets and have been used by the enterprises; and (three) goods whose selling price does not exceed their original value.

For those who do not have the same conditions at the same time, no matter how the accounting system stipulates how to calculate, the value added tax shall be levied at the rate of 6%.

Compared with the original provisions, the 29 major differences between the two articles are as follows: firstly, the scope of VAT is narrowed down, and taxpayers who sell their own yachts, motorcycles and excise tax cars are taxed from the original regardless of whether the selling price exceeds the original value. Instead, they are exempt from value added tax instead of taxing the price above the original value and selling the price not exceeding the original value.

The two is to reduce the tax burden, from the original 6% (sales of second-hand goods 4%, see the national tax [1998]122 notice) the rate of levy, instead of a unified levy of 4% levy VAT.

The three is to take the form of tax relief, that is, first calculate the taxable amount according to the rate of 4%, then reduce it by half, or about 1.923% of the internal tax.

The four is the unification of the tax exemption and exemption caliber, that is, the taxpayers sell all the fixed assets that they used to belong to the goods are taxed or tax-free, all of them are defined according to the three conditions stipulated in the Notice No. [1995]288 issued by the state tax letter.

The five is that special regulations have been made for the old motor vehicle operating units, which stipulate that the sales of old motor vehicles should include all kinds of motor vehicles, motorcycles and yachts, which sell sales tax and no consumption tax, and reduce the value added tax by 4%.

However, the old motor vehicle business units and second-hand goods sales units sell the fixed assets they used, they should still implement the [1995]288 notification of the IRS, as well as the relevant regulations in the regulations, rules and 29.

From these changes, we can see that the State adopts a loose tax policy for taxpayers selling old goods such as fixed assets, so as to reduce the burden of enterprises by adjusting the tax revenue.

According to the provisions of the finance and taxation [2002]29 document, some people understand that the taxable basis for taxable fixed assets should be reduced to half the sales revenue multiplied by 4%.

For example, if the fixed asset is priced at 10000 yuan, the taxable amount should be 10000 x 4% x 50% = 200 yuan.

Some people think that the selling price of fixed assets is taxable, and should be converted into non taxable sales, and then the amount of tax payable should be re calculated, for example, the above example, that is, 10000 / (1 + 4%) x 4% * 50% = 192 yuan.

The author believes that only the sales revenue of duty-free goods does not include VAT, and others contain VAT. When calculating the tax payable, it should be converted into non tax based sales according to the tax rate, and then the amount of tax payable should be calculated, such as the deduction of the tax deduction for the purchase of duty-free agricultural products.