The sale and purchase of any property in Russia is in great demand. These are the most common types of deals. Next, we will be interested in tax when selling a car. When and how much will the state have to give? Are there any secrets to help evade tax or weaken it? What do the seller have to do after selling the vehicle? The answers to all these questions will be surely given below. In fact, understanding the topic is easier than it seems initially.
Tax type
Is car sales taxed? Generally yes. But what kind of payment?
Taxpayers who own vehicles must transfer personal income tax. This is a personal income tax. It is paid from any profit of a citizen with rare exceptions.
The sale of property provides for appropriate taxation. Therefore, many believe that it is always necessary to make a payment in favor of the Federal Tax Service. But is it really so?
Ambiguity of payments
Regarding the question of whether to pay a tax on the sale of a car, the exact answer will depend on the circumstances in which the transaction is concluded.
Ideally, taxation for citizens of the Russian Federation and for foreigners takes place. So, the seller will have to face personal income tax in the established sizes. But if certain conditions are met, then by law, vehicle owners are exempt from taxes when selling cars. We will talk about this in more detail.
How much to pay
What tax on the sale of a car owned by a person will have to pay modern citizens? We found that we are talking about personal income tax. The exact size of the payment is impossible to predict.
The thing is that the citizens of the Russian Federation give 13% of the profits. Accordingly, the seller will transfer to the Federal Tax Service thirteen percent of the transaction amount.
For foreigners, a different interest rate applies. She in 2018 is 30%. Therefore, selling cars in Russia is unprofitable for foreign citizens.
Payable Amount
How much car sales tax is taken? The main problem is that taxation in Russia regarding the sale of cars is present only for certain amounts of the transaction.
Ideally, it should be more than 250,000 rubles. After the transaction amount is above the specified number, taxation will be fully effective. But with some reservations, which we will examine in more detail below.
Less than a minimum
Is car sales taxed? As already mentioned, not always. There are a number of features that help get rid of taxation under the law.
If the transaction amount is less than 250,000 rubles, then you will not have to pay personal income tax under any circumstances. Unfortunately, in practice, this alignment is extremely rare. And so they are almost not interested.
Ownership less than 3 years
What tax is taken from the sale of a car? The seller will be charged personal income tax, which is 13 percent. There are situations when you do not have to face the relevant payments.
If the owner has owned the transport for less than three years, and the amount under the contract is more than 250 thousand rubles, then you will have to transfer the income tax for individuals without fail. This rule is spelled out in the Tax Code of the Russian Federation.
Owned for more than 36 months
Income tax on car sales is not always levied on vehicle owners. To accurately understand the topic under study, you need to know how long the car is owned by a particular person.
Is your car ownership less than 3 years? We have already met with a similar situation. If the transaction amount under the contract is more than 250,000, taxation will take place. And what to do when a citizen is the owner of the car for more than 36 months?
Under such circumstances, personal income tax is not paid. Owning a vehicle for more than 3 years exempts the owner from taxation on the sale of movable property. There is nothing difficult or incomprehensible in this.
Myself in the "minus"
Taxes on car sales do not always have to be transferred by the previous owner of the vehicle. In real life, there are a number of principles that exempt from additional costs when concluding the studied type of transactions.
The absence of a tax on the sale of a car is observed when the transaction is carried out “minus” to the seller. In other words, if a citizen sells a vehicle for less than he buys it.
Suppose, initially, a car was bought for 600,000 rubles. A citizen decided to sell the vehicle for 590,000 rubles. In this situation, taxes are not levied even if the property is owned for less than 3 years.
Spending reduction
Despite all the above features, modern residents of the Russian Federation can count on a reduction in personal income tax when selling vehicles. But for this you will have to collect a certain package of papers.
Personal income tax when selling a car is sometimes reduced by the amount of expenses for the maintenance of transport. For example, you can consider machine repair and maintenance. Then the tax base is reduced by a certain amount.
Lack of documentation
But what if the vehicle is sold for more than 250 thousand rubles in “minus” to the seller, but there are no documents confirming this fact?
Income tax on car sales will be levied in the prescribed amount. But this rule does not apply if the property is owned for more than 36 months.
Base definition
Suppose that a car is sold for an amount exceeding the established minimum exempting from personal income tax. How to determine the tax base in such circumstances?
It is enough to deduct 250,000 rubles from the amount under the contract of sale. This will be the tax base.
To accurately calculate the tax on the sale of a car, it remains to multiply the resulting base by 13%. Consider the processes with a good example.
Payment Calculation Example
So, the car is owned by a citizen for less than three years. The owner of the car decided to sell it as a plus. Initially, transport was bought for 400,000, it is sold for 600,000 rubles. Documents for the first purchase are available. What payment will you face in the end?
For the calculation of personal income tax for sale, the following calculations are required:
- 600,000 - 400,000 = 200,000;
- 200,000 x 0.13 = 26,000.
The result - personal income tax will be equal to 26,000 rubles. It is such a payment that the seller will have to make for a perfect deal.
Settlement without documents
And how is tax calculated when a transaction for the sale of vehicles is carried out in "minus" to the owner? Suppose that the owner of the car does not have documents confirming the cost of buying a car.
Consider the situation: a couple of years ago, a citizen bought a car for 300,000 rubles. There is no evidence of this. In 2017, the owner sells movable property for 600,000 rubles.
The tax on car sales will be calculated as follows:
- 600,000 - 250,000 = 350,000;
- 350,000 * 0.13 = 45,500 rubles.
Ultimately, the FTS will need to transfer 45,500 rubles for the operation. The amount taxed is taken from the difference between 250 thousand and the amount under the contract.
Reporting
There are some more points that were not mentioned. They are closely related to taxation when buying and selling cars.
For example, when selling a vehicle you will have to file a tax return with the Federal Tax Service. Relevant documentation is always presented. It doesn’t matter if the tax is transferred or not.
The absence of a timely submitted declaration in the form of 3-personal income tax entails a certain punishment. To date, such an act is punishable by a fine of 1,000 rubles. You will have to pay it in case of tax payment, and if the citizen is exempted from this kind of responsibility.
Deadline for filing a declaration
Sale of a car by inheritance taxes provides exactly the same as with the usual sale of vehicles. Acquisition of property by inheritance does not affect the issue under study.
When do I need to file a tax return in the prescribed form? In Russia, there are certain deadlines for submitting the 3-NDFL form.
Profits must be declared no later than April 30 of the year following the transaction period. In other words, if the car was sold in 2017, it will be necessary to report to the state in 2018 until 30.04.
Skipping the deadline for at least 1 day, as already mentioned, entails sanctions for the seller of the vehicle.
How much to pay
We found out the amount of tax free when selling a car. And with the deadline for filing a tax return , now everything is clear too. And to what date do you need to transfer personal income tax?
The funds for the transaction will have to be given to the state until July 15 of the year following the year of signing the contract. Earlier this period, funds can be transferred, later - no.
Punishment for tax evasion
Among other things, citizens may face overdue personal income tax. This situation entails certain sanctions, namely fines. In what sizes?
For non-payment of tax and non-submission of tax returns imposes a fine of 1,000 rubles + 5% of the amount owed. Moreover, the maximum penalty in percentage cannot exceed 30% of the amount of tax.
Additionally, the seller is entitled to pay a penalty. The corresponding fine begins to accrue from July 16. It ceases after a citizen transfers the statutory funds to the Federal Tax Service.
What else to pay for
We examined the basic tax when selling a car. This does not end with useful information on the sale of vehicles.
The thing is that the owner of the machine after the sale of his property will be faced with one surprise. This is a transport tax. How legal is this requirement?
Totally legal. Another year after the sale of property, the seller needs to transfer property taxes to the Federal Tax Service. In our case, transport taxes. They will be calculated taking into account the months of ownership of the machine in a given year.
Accordingly, the last tax on the car will simply be lower than usual. No more expenses are allowed.
Terms of payment of taxes for transport
Some citizens are interested in how much they have to pay for a car. It is a transport tax (for property).
In 2018, under current laws, owners must pay for the property until December 1. Delay in payment begins on December 2.
Of course, you will have to pay for the previous year. In 2018, the transaction for 2017, in 2016 for 2015 and so on. There is nothing difficult or incomprehensible in this.
What can be deducted
Earlier it was said that car dealers have the right to receive the so-called deduction. More specifically, it is possible to easily reduce the tax base for certain costs associated with transport.
By law, deductions include:
- services for searching for vehicles, checking the purity of the operation, preparation of documentation;
- taxes transferred for receiving a gift or inheritance;
- payment of fees for cars;
- customs transactions;
- actual costs of the car.
All these payments will have to be documented. Otherwise, they will simply not be taken into account by the tax authorities.
What is not deductible
It is important to understand what costs will not be taken into account under any circumstances. The following expenses will not reduce the income tax on car sales:
- interest on loans for vehicles;
- car insurance;
- payments on debts of the testator;
- debts for the purchase of a car.
Even if there are securities confirming the relevant transactions, it will not work to take them into account when calculating personal income tax for the sale of vehicles. Such a right is simply not offered by law. There are no privileges and permissions in this matter.
The procedure for contacting the Federal Tax Service
A few words about how to properly declare income from the sale of a car to the Federal Tax Service. It is worth noting that a declaration with a package of securities is submitted directly to the tax office or through the MFC. Moreover, the 3-NDFL form is considered both in electronic and in paper form.
In general, step-by-step instructions for contacting the Federal Tax Service after the sale of a vehicle looks like this:
- Make a sale transaction. Get the money and give the buyer a receipt of the established form.
- Prepare a package of documents. We’ll review their list below.
- Fill out a tax return.
- Contact the Federal Tax Service or the MFC within the deadlines established by law.
That's all. Now it remains only to pay tax if necessary. This is not so hard to do. You can resort to the help of Internet banking, ATMs, bank cash desks, as well as electronic wallets. Everyone chooses a method of paying taxes independently. The main thing is to meet the deadlines.
Documents for declaration
And what papers are useful when contacting the tax authority after concluding a car purchase and sale transaction?
Often a documentation package includes:
- TIN of the applicant;
- form 3-NDFL;
- contract of sale;
- evidence of receipt of money for the transaction;
- identification;
- statements indicating the duration of ownership of the car;
- Help with registration.
All this will be enough to apply to the Federal Tax Service, and to fill out a tax return. Additional inquiries also take place. These are statements indicating transportation costs. Implied are those that reduce the tax base in the long run.
Conclusion
We found out if the sale of a car is taxed. As a rule, understanding this topic with the right approach is not so difficult. Existing laws allow in certain cases to get rid of taxation.
There are no benefits or other bonuses when selling cars. Fortunately, under certain circumstances, the population can completely get rid of the income tax for the sale of their property.
But some people can be exempted from the transport tax in whole or in part. For example, pensioners have the right to own vehicles without taxation. This bonus does not affect personal income tax when selling a car.
Now it’s clear when, how and in what time frame it will be necessary to pay income tax for the sale of a car. The proposed information is relevant to date.