Taxes and fees are an unavoidable issue in the used car trading process. These taxes and fees mainly include personal income tax, value-added tax, stamp duty, urban maintenance and construction tax, and education surcharge.
Individual income tax is one of the taxes that the seller needs to pay in the second-hand car transaction, and its calculation method is to pay the balance of the transfer income minus the transfer cost as the transfer income, and the individual income tax is levied according to the property transfer income item.
If the seller is unable to provide a complete and accurate proof of cost, then the tax department will verify the individual income tax according to the specific situation of the used car.
VAT is another tax that the seller needs to pay in a used car transaction.
Depending on the age of purchase and displacement of the used car, the VAT rate will vary. Generally speaking, the VAT rate for second-hand cars purchased for less than 2 years is 3%;
For second-hand cars purchased for more than 2 years (including 2 years), the VAT rate is 2%; For second-hand cars purchased for more than 5 years (including 5 years), the VAT rate is 1%.
Stamp duty is also one of the taxes that need to be paid in used car transactions.
According to the Stamp Duty Law of the People's Republic of China, in a second-hand car transaction, the seller needs to pay 005% to pay stamp duty.
In addition to the above three main taxes, there are some other fees to be aware of when it comes to used car transactions.
For example, in Beijing, sellers need to pay additional taxes such as urban maintenance and construction tax and education surcharge; In Shanghai, sellers also need to pay fees such as vehicle and vessel use tax.
In the process of used car trading, it is very important to understand the calculation methods and precautions of various taxes and fees.
Only by understanding the situation of these taxes and fees can we better conduct used car transactions and avoid unnecessary troubles and losses. At the same time, it is also recommended that the buyer and the seller fully understand the situation of various taxes and fees before the transaction, and negotiate the way of tax sharing to protect the rights and interests of both parties.