Individuals Selling Used Cars Must Register for Tax and Pay Business Tax

• Individuals selling used cars and motorcycles must register for tax purposes and pay business tax.
• The Central Region National Taxation Bureau notes the rise in used vehicle transactions due to increasing new vehicle prices.
• According to the Business Tax Law, sales of goods or services in Taiwan require tax registration before starting operations.
• Frequent sales of used vehicles for profit necessitate tax registration and payment.
• If purchasing from individuals without input tax documents, sellers can use related documents to calculate deductible input tax.
• A case was found where an individual frequently bought and sold used cars, reaching a sales amount of 5.6 million NTD over two years.
• The individual was required to pay a 5 percent business tax, totaling 280,000 NTD, with a deductible input tax of 270,000 NTD, resulting in a 10,000 NTD tax payment.
• The bureau urges individuals frequently selling used vehicles to register for tax 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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