Often we are faced with a situation where there is friction with the law regarding certain taxes. With the regular introduction of new laws, as well as the adoption of amendments to existing ones, not every citizen of the Russian Federation succeeds in monitoring timely payment of taxes.
This article is primarily aimed at describing all the principles and aspects that relate to their payment from the sale of a car. You will find out what tax is levied on the sale of the car, and also find out how it is calculated.
Laws that indicate payment of transport tax
Selling a car based on article 208 is actually considered to be revenue generation. Each driver should pay income tax (or report on time) from the sale of his vehicle. Therefore, in accordance with Article 229 adopted last year, each taxpayer should be provided with a declaration no later than April 30 of each current year, which sets out the price of the sale of the car, in addition, the tax on the sale of the car.
For example, if your car was purchased in 2014, then you must submit a tax return and report no later than 04/30/2011.
Auto tax: who needs to pay it
The transport tax code defines the person who the car was registered for. Even if the car was sold by proxy, therefore, it does not actually belong to the person to whom it is registered, it does not remove the obligation to pay tax.
The name of the taxpayer on the vehicle data sheet indicates the person who legally owns the object of taxation, which means that he must pay the tax when selling the car. In order to save yourself from paying it, you should remove the car from registration.
If the vehicle was stolen, then the tax is not levied for the period of time when the investigation was under investigation.
It should be borne in mind that income from:
- tax residents of the Russian Federation;
- non-tax residents of the Russian Federation.
Tax residents are considered to be persons who are actually in Russia for at least 183 days a year. Moreover, the status of a tax resident does not depend on citizenship. What does it mean? If you have been in Russia for at least 183 days a year, then next year you will be considered a tax resident. In this case, persons who tax residents are not, tax is paid at a higher rate, but only on income that was received in Russia.
Car Declaration
Each car owner can submit a sample declaration to the tax office at the place of residence or residence in one of the following ways:
- come to the tax office yourself;
- by mail
- send documents using the Internet.
What is the tax when selling a car
Since 2010, significant changes have been made to the sale of cars. For example, article 217 was amended. Today, paragraph 17 says that if a car was sold, income tax is 13%. But if the car was owned by the car owner for at least 3 years or more, then he does not pay taxes. Consequently, according to the declaration, no documents are needed anymore.
The government also increased the amount of tax deductions to 250 thousand rubles from 125 thousand. All taxpayers are entitled to a deduction when selling a car if the car is owned by a person for less than three years.
So what tax on car sales will need to be paid using the deduction? For example, if you managed to sell your car for 350,000 rubles, then, using 220 articles, you can get a deduction of 250,000 rubles. Due to this, the sales tax will be 13,000 rubles.
But you can also go for another way to reduce the tax rate. Article 220 of the Tax Code provides for the replacement of deductions for property with a decrease in the total amount of taxes on all taxable income. Thus, you will pay a sales tax much less than the first option, but you will not receive property deductions.
At the same time, for individuals car tax The tax inspection is required to calculate. But if a car is sold by a legal entity, taxes are calculated by him independently.
Cases when you do not have to pay tax
Selling a car is taxable only when it generates income. But if it is absent, then the tax after the sale of the car does not need to be paid. So in what situations is car sales tax free? If the car has been owned by the taxpayer for at least three years, then you do not need to pay tax.
If the purchase amount is greater than the sale amount, which is documented. In this case, we are not talking about profit, therefore, there is no need to pay tax. In addition, if you sell a car for less than 250,000 rubles, then you do not need to pay tax.
IP car sale: taxes
If the contract of sale states that the car is selling IP (if all the necessary details are indicated, including banking details), all primary necessary documents (for example, an invoice) are written to the car, then the income will be considered to be received as part of the IP . So, having such a car purchase and sale agreement, you will pay tax at the rate STS 6%.
When selling a car that was owned up to 3 years, the taxpayer must submit a 3-NDFL declaration to the tax office. After that, he will have to pay income tax on the sale of the car. The tax base is reduced by the full amount of the property deduction, amounting to 250,000 rubles. Moreover, instead of property deduction An individual entrepreneur can reduce all income received by the total amount of expenses associated with the purchase of a car. It is also worth considering that the cost of buying a car must be documented.
How to deal with taxes when donating a car
In this case, 228 article of the Tax Code has the main force. It clarifies the fact that the tax is paid by the person who received income from the car as a gift, but it does not matter, in kind or in cash. An exception may be the situation when family members, as well as any of the relatives, act as the donee or donor.
Sale of cars on the stock exchange: tax features
When buying a car using the commodity exchange, you need to consider that only new vehicles are allowed to bid here. But this exception does not apply to cars that are disposed of as collateral and confiscated property.
Therefore, it is impossible to sell a used car on the commodity exchange today. Its value will be established in accordance with the expert opinion on the value of this property. In this case, the examination of the price of the vehicle is carried out by a specialist who was listed in the State Register of Appraisers or the State Register forensic experts.
The value of a car for tax purposes is determined solely on the basis of this assessment, regardless of the method of processing the transaction. It is not recommended at the same time to conspire with appraisers to reduce the cost of the car, because for this the expert and the taxpayer are already criminally liable.
Subtleties of paying auto tax
When drawing up the declaration, the car owner uses the 3-NDFL form.But not everyone knows if car sales are taxed. We note the points that must first be taken into account when drawing up the declaration and paying taxes:
- If the car is in your possession for up to three years, for which there is confirmation officially certified by a notary, and that the total amount spent on the purchase of a car is greater than the received, then the tax on the sale of the car will no longer be required.
- If the car is owned for more than three years, then they will not require to pay the tax after the sale of the car.
- If your car costs less than 250,000 rubles, then tax payment and the preparation of a declaration when selling a car are not carried out.
Fines for tax evasion
If you did not pay the tax on the sale of the car on time, then sanctions will be imposed on you (5% of the amount of tax for every month from the date of delay). The amount of the fine may be no more than 30 percent of the tax, but at the same time not less than one hundred rubles.
We calculate the tax on the sale of cars
If the price of the car sold by the taxpayer is more than 250,000 rubles, then all profits from the sale in this case are taxed. In this case, the tax rate will be 13%.
If a car is being sold by an individual, its taxes may be reduced. A taxpayer can also take advantage of such a privilege as a property deduction in order to significantly reduce the final amount of tax.
You need to understand that property deduction is the amount by which the amount of profit is reduced. Now the deduction amount for the sale of the car has been increased from 125,000 rubles to 250,000. Therefore, if you sold the car for 350,000, then you will have to pay a tax equal to 13,000 rubles.
There is also another option for reducing the amount of auto tax. Article 220 of the Tax Code provides for the accounting of those expenses that the car owner incurred during the purchase, as well as car care when the car was in his possession.
If the taxpayer who sold the car for 350,000 can confirm with documents that he spent, for example, 270,000, then this expense is deducted from the sale amount. Consequently, the tax on the sale of a car will be 13% of 80,000, in other words, 3900 rubles.
When buying a car, you should save all purchase invoices in order to reduce the tax amount later, or not pay it at all if the purchase price is greater than the amount that was received from the sale.
The taxpayer himself determines what is most beneficial for him: documented expenses or property deduction for the car. But at the same time, it will not work to take advantage of these two benefits simultaneously.
Sale of several cars in 1 tax period
If you sell several cars at once in one year, as well as if you are selling some other property, be it a dog, a painting, a garage, the amount of tax on the sale of a car will be much higher, since the property deduction for all sales is not may be more than 250,000 rubles.
The exception is the sale of apartments, houses, securities and land.
Procedure for paying transport tax
Tax authorities are required to send a tax notification to the home address of the person whose name is indicated on the data sheet. Often the following question sounds: what if the notification did not come home? You need to understand that the tax office is required to send a notification, but it does not control its delivery to the addressee. Therefore, if it did not find the latter for some reason, then the taxpayer needs to contact the Federal Tax Service Inspectorate on his own, get a second notice there, and then pay the transport tax.
Car owners are also interested in the following question: should they pay tax if they are not used by the machine. For example, it may be subject to major repairs.But NK does not see the difference between car owners who use a car and people who do not. Transport tax when selling a car must be paid in any case. The only exception is the case of car theft, which we talked about above.
It is also worth noting that the declaration form can be filled out using the program that you need to download from the inspection site. Moreover, in each new year its new version is compiled. It should be understood that the use of last year’s programs does not make sense, since during the year many amendments and articles are regularly changed in tax legislation.
It must be remembered that the seller of the car should pay and calculate the total amount of tax on time. Payment of this tax can be done after the sale of the vehicle.
And finally. At the present moment, the system of information interaction between government bodies is constantly being improved, the exchange of information is being established, and the time frame for their receipt has been significantly reduced.
Therefore, the likelihood that over time the tax inspectorate will be able to track the time of removal of the car from the register, while proving documented income, while undeclared income, is increasing steadily. Therefore, I want to believe that this article will help you not to run away from the inspection, but to independently account for the income received from the sale of the car, reducing in most cases payments to tax to zero.
