GST Guide for Motor Vehicle Traders: New and Second-Hand Sales Explained

• The guide is for GST registered businesses selling new and/or second-hand motor vehicles.
• It explains the GST treatment for motor vehicle traders and illustrates GST computations for vehicle sales.
• Motor vehicle trader activities include importing vehicles, selling new and used vehicles, and selling bodies of de-registered vehicles.
• All vehicles in Singapore must be registered with LTA, which imposes regulatory charges on new vehicle sales that do not attract GST.
• Other charges related to vehicle supply are subject to GST.
• GST treatment differs for new and second-hand vehicle sales.
• For new vehicles, GST is charged on the selling price excluding regulatory charges.
• For second-hand vehicles, GST computation depends on the Gross Margin Scheme or Discounted Sale Price Scheme.
• Non-traders should use the Discounted Sale Price Scheme for occasional sales of second-hand business vehicles.

Source: iras.gov.sg

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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