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Used Car Buy and Selling any GST?


Edrollbrick
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Neutral Newbie

Hi All,

 

Just wondering if anyone knows that when we sell our used car as a private person deal is there GST?

 

And we buy from or through a second car dealer will they charge for GST?? Just been thinking about buying a used 1 or 2 year car.

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Neutral Newbie

I would assume GST would apply any time the car is sold or resold by a dealer

 

I don't think it would apply on a direct owner sale, however I am not sure.

 

I would like to know if the prices on sgcarmart are inclusive of GST, anyone know?

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Neutral Newbie

I believe buy and sell as private person there cannot be GST charged on the deal price as GST is only applied to businesses with a certain level of revenue. Not so sure for dealers though...

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Neutral Newbie

Only GST registered business can charge GST. Must hv a GST registration no.

 

For your case, car dealer should be GST registered given that their sales amount in a year is expected to be more than $1m

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Recently been to one used car dealer in turf city trying to charge me GST on my 2nd hand car purchase.

 

I am going to report this dealer to IRAS.

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Recently been to one used car dealer in turf city trying to charge me GST on my 2nd hand car purchase.

 

I am going to report this dealer to IRAS.

 

Post the name of the dealer here leh so that all of us can be aware of their evil doings.

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Even for new car, the GST is only charge/paid on the OMV price. Not the final selling price after all the tax and profit margin is added. Why should anyone paid GST for 2nd hand car base on final selling price.

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Even for new car, the GST is only charge/paid on the OMV price. Not the final selling price after all the tax and profit margin is added. Why should anyone paid GST for 2nd hand car base on final selling price.

 

Yes, I totally agree, I was told by the sales person that the company is a gst reg company hence need to collect gst from client. The car I intend to purchase was 100k, I bargain till 95k then was told the 7% gst need to be included. I had just called iras to report this company and let them investigate.

 

 

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Turbocharged

Yes, I totally agree, I was told by the sales person that the company is a gst reg company hence need to collect gst from client. The car I intend to purchase was 100k, I bargain till 95k then was told the 7% gst need to be included. I had just called iras to report this company and let them investigate.

The tricks dealers have up their sleeves will put any magician to shame lah. Read the blacklisted 2nd hand car dealers thread.

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Yes, I totally agree, I was told by the sales person that the company is a gst reg company hence need to collect gst from client. The car I intend to purchase was 100k, I bargain till 95k then was told the 7% gst need to be included. I had just called iras to report this company and let them investigate.

Good for you. Shame these unscruplous dealers! This is cheating!

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Turbocharged

thanks for highlighting this.. i didn't know about this too.. lucky for me the dealer didn't charge me gst and other nonsense admin.. simply the car price and lta fees. that's it.

 

buying 2nd car is machiam like swimming among crocodiles.. [sweatdrop]

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In actual fact, there is GST to be paid for used cars.

 

The GST is levied on the gross margin earned by the dealers, and not the selling price.

 

Since all 2nd hand dealers will not reveal their margins to you, the selling price (as listed / agreed) is inclusive of GST already. So, there is "no need to pay GST again" although technically there is a GST element involved. The dealers will need to declare and pay GST component to IRAS based on their profit margins.

 

This info is available in IRAS e-tax guide.

 

So, if a dealer is charging you 7% GST based on selling price, he is carroting you.

Edited by Kangadrool
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