Speaking about such a side of the issue as a tax when selling a car for an individual entrepreneur, it should be noted that there are some nuances here, which it would be better to know about in advance, even before the legal conclusion of the transaction.
You can learn about what taxes an individual entrepreneur pays when selling a car, what property deduction can be obtained, what is the relationship between the number of obligations to the budget and the purpose of using a technical means, what is the procedure for filing a declaration and what penalties are provided for in case of late submission, you can find out from this article.
What taxes does an individual entrepreneur pay when selling a car?
For state bodies, there is no significant difference whether the transaction is carried out on behalf of an individual or by an individual entrepreneur. And in this situation, depending on who acts as a seller, only what type of payments will be paid to the state treasury will be determined.
If the transaction is carried out by an individual, then in this case VAT must be paid. If the seller is a merchant, then a simplified taxation system applies.
In addition, the state budget should pay:
- income tax of 13%, which is applicable to both an individual and individual entrepreneurs who decide to sell a vehicle previously used exclusively for personal purposes;
- An individual entrepreneur pays VAT in the amount of 18% if the technical equipment being sold was used in the activities of the company.
If the simplified taxation system is chosen, then the payment of the above fees is not necessary. However, in this case, the individual entrepreneur is obliged to include the income from the transaction in the taxable base.
Car sales deduction
If we talk about the property deduction, then only individuals receive the right to it when paying personal income tax. You can not pay the indicated type of mandatory payment if:
- managed to document that the cost of selling a car is less than the purchase price. An alternative to this solution is the option when the cost of the vehicle is less than 250 thousand rubles;
- the seller has owned the car for over 3 years.
Tax and purpose of using the vehicle
The purpose of using the vehicle being sold is of decisive importance when indicating the type of fee collected in favor of the state. In this regard, this issue should be considered in advance.
In the case of the sale of a passenger vehicle by a company that is not related to the transportation of passengers, it will be possible to easily prove whether the car was used for commercial purposes.
If there is a sale of a truck or bus, then it will be very difficult to prove that the car was used exclusively for personal purposes. As a result, the payment of the fee will be carried out in the same amount as in the case of an individual entrepreneur.
Declaration when selling a car
If the transaction was completed, then the businessman fills out either manually or in electronic form a document in form 3 – personal income tax.
This declaration must be submitted to the tax office no later than April 30 of the year following the year in which the vehicle was sold. However, you can apply for a property deduction at any time.
It is recommended that you carefully consider the date of the transaction. If the car was deregistered after the 15th day, then the month in which the transaction was carried out will be taken into account when calculating the amount of the installment payable. If the car was deregistered before the 15th day inclusive, then in this case the current month will not be counted.
Penalties for late submission of the declaration
According to Russian fiscal legislation, an individual entrepreneur, in case of late submission of a form in form 3 – personal income tax and late payment of the fee, pays the state a fine, the minimum amount of which is 1000 rubles.
In addition, according to Article 75 of the main fiscal document of the country, in the event that a declaration is submitted on time and the amount of tax payable to the budget is overdue, the taxpayer pays a penalty in the amount of 1/300 of the refinancing rate of the Central Bank of the Russian Federation until the debt is fully repaid .
In conclusion, it should be noted that the correct execution of the purchase and sale transaction, as well as the filing of a tax return in the form of 3 personal income tax and payment of taxes on time, will avoid unnecessary costs for paying penalties and save time that can be spent on sorting things out with fiscal services.