This guide is for GST registered businesses selling new and/or second-hand
motor vehicles
The purposes of this guide are:
(a) To explain the GST treatment applicable to motor vehicle traders; and
(b) To illustrate the GST computations for sale of motor vehicles.
At a glance
The business activities of a motor vehicle trader include the importation of
motor vehicles, sales of new and used vehicles, and sales of motor vehicle
bodies of de-registered vehicles.
All motor vehicles in Singapore must be registered with LTA. To curb the
growth of vehicle population in Singapore, LTA imposes regulatory charges on
the sale of new vehicle. Regulatory charges do not attract GST as they do not
relate to the provision of goods or services.
All other charges or payments received in relation to a supply of motor vehicles
are subject to GST.
The GST treatment for the sale of a new motor vehicle differs from that of a
second-hand motor vehicle. For the sale of a new vehicle, GST is chargeable
on the selling price of the motor vehicle excluding regulatory charges such as
COE. For the sale of a second-hand motor vehicle, the computation of the GST
chargeable depends on whether the sale is made under the Gross Margin
Scheme or the Discounted Sale Price Scheme.
Source: gov.sg
