From April 1, 2018, second-hand car trading markets, second-hand car dealerships, brokerage agencies and auction companies should issue unified invoices for second-hand car sales through the new value-added tax invoice management system.

Used cars mainly involve several situations such as levying VAT at the applicable rate, levying VAT at half the rate of 4%, levying VAT at the reduced rate of 2%, and exemption from VAT. However, In either case, a regular invoice will be issued.

Uniform invoices for used car sales are issued by each locality, and the invoicing software is also developed by each locality. Transfer invoice information cannot be connected to the Internet nationwide and is difficult to query; even the invoice styles are slightly different.

After the unified invoice for second-hand car sales is included in the new value-added tax invoice management system, the tax authorities will supervise the invoicing business of second-hand car sales in a more timely and strict manner.

Units and individuals can log in to the national VAT invoice inspection platform to inspect the unified invoice information for second-hand car sales issued by the new VAT invoice management system. The improvement of the invoice supervision and management function can prompt all types of second-hand car trading entities, especially the second-hand car trading market, to further standardize invoicing behavior, survive the fittest, and regulate enterprises to further grow.

Extended information:

Second-hand car sales tax method:

A taxpayer sells a second-hand car at a price of Taking 50,000 yuan (tax included) as an example, the VAT treatment method and the calculation of the VAT payable are as follows:

1. VAT is levied at the applicable rate. Applicable situations are:

General taxpayers sell used second-hand cars purchased after January 1, 2009 that can deduct input tax according to regulations. General taxpayers who have been included in the pilot program to expand the scope of value-added tax deductions before December 31, 2008, sell their own used second-hand cars purchased after being included in the pilot program, and the input tax can be deducted according to regulations. Value-added tax payable = 50,000/(1+16%) × 16% = 6896.55 (yuan).

2. Value-added tax is levied at a half rate of 4%. Applicable situations are:

General taxpayers sell used second-hand cars that are not allowed to be deducted and the input tax has not been deducted. General taxpayers who were not included in the pilot program to expand the scope of value-added tax deductions before December 31, 2008, sell their own used second-hand cars purchased before December 31, 2008.

General taxpayers who have been included in the pilot program to expand the scope of value-added tax deductions before December 31, 2008, sell their own used second-hand cars purchased before being included in the pilot program. General taxpayers sell second-hand cars that have not been used by themselves. Second-hand cars sold by general taxpayers and small-scale taxpayers engaged in second-hand car distribution. Value-added tax payable = 50,000/(1+4%) × 4%/2 = 961.54 (yuan).

3. Value-added tax is levied at a reduced rate of 2%. Applicable situations are:

Small-scale taxpayers (other than other individuals) sell their own used second-hand cars. Value-added tax payable = 50,000/(1+3%) × 2% = 970.87 (yuan).

4. Exemption from value-added tax.

Other individuals selling their used second-hand cars are exempt from VAT.

Reference source: Baidu Encyclopedia - Second-hand car value-added tax

Reference source: Baidu Encyclopedia - Motor vehicle sales invoice

Reference source: Phoenix.com - Interpre tation of the State Administration of Taxation’s new regulations on the issuance of unified invoices for second-hand car sales

The unified invoice for used car sales does not need to be replaced by an ordinary VAT invoice.

According to the "Measures for the Administration of Used Car Circulation" and the "State Administration of Taxation on Unifying the Style of Second-hand Car Sales Invoices" "Notice" and "Announcement of the State Administration of Taxation on Issues Concerning the Use of Invoices by Second-hand Car Distribution Enterprises":

For the sale of second-hand motor vehicles, different situations need to be distinguished and handled separately:

1. If the company sells the car to a second-hand car dealer, and then the second-hand car dealer sells it to the buyer, the second-hand car dealer will issue a "Uniform Invoice for Used Car Sales" to the buyer;

2 . If the company conducts direct transactions of second-hand cars or conducts second-hand car transactions through second-hand car brokerage agencies, the second-hand car trading market operator shall issue a "Uniform Invoice for Used Car Sales" to the buyer in accordance with regulations.

However, you can also refer to many local policies, such as the Hubei Provincial State Taxation Bureau’s regulations on the issuance of second-hand car invoices:

1. It has been processed at the state taxation authority. Tax-registered VAT taxpayers (excluding second-hand car dealers engaged in the purchase and sale of second-hand cars, the same below) who directly sell second-hand cars can pre sent the original copy of the VAT invoice to the second-hand car trading market to exchange for a unified invoice for second-hand car sales.

2. Other taxpayers who directly sell second-hand cars should declare and pay value-added tax on a case-by-case basis to the competent state tax authority where the institution is located (place of residence) or where the second-hand car market is located, and go to the second-hand car transaction with the original tax payment form The market will issue unified invoices for second-hand car sales.

3. Natural persons who directly sell second-hand cars should go to the second-hand car trading market to issue a unified sales invoice for second-hand cars, which is exempt from value-added tax.

In second-hand car transactions, the importance of the invoice amount cannot be ignored. Although the state has revoked the official assessment of second-hand car transfers by the Price Bureau and adjusted the fee to a unified total service fee, the unified sales invoice for second-hand cars plays a key role in the transfer process and is indispensable.

According to the "Notice of the State Administration of Taxation on Unifying the Style of Second-hand Car Sales Invoices", in second-hand car transactions, whether it is a trading market, dealer, brokerage agency or auction house, the sales of second-hand cars When buying a car, you must issue a second-hand car sales invoice through the new version of the VAT invoice management system. This invoice not only records the sales price of the vehicle in detail, but is also legal evidence of the transfer of vehicle ownership.

It is worth noting that during the transfer process, the invoice amount will not directly affect the occurrence of additional fees, and consumers do not need to pay extra for this. This policy adjustment saves consumers money and also simplifies the second-hand car transaction process. Therefore, although the second-hand car invoice amount itself does not directly affect the transfer costs, as a legal document of the transaction, its accuracy and legality are crucial to protecting the rights and interests of the buyer and seller.