Used Car Market Tax Reporting: Ensure Compliance with Input Tax Credit Regulations

• Used car dealers must follow tax regulations when purchasing from individuals to claim input tax credits.
• Dealers should use contracts or other documents as input vouchers when official invoices are unavailable.
• Input tax is calculated based on purchase cost and compared to sales tax for each vehicle.
• Dealers must submit a detailed input voucher list with tax filings and keep records for audits.
• Example: A dealer bought a car for 315,000, calculated input tax as 15,000, sold it for 420,000, and claimed the full input tax.
• Another car bought for 210,000 had an input tax of 10,000, sold for 168,000, and only 8,000 could be claimed.
• Dealers are reminded to adhere to these rules to avoid penalties.

Source: mof.gov.tw

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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