The State Duma promptly adopted in the second and third readings a law on the abolition of double collection of value added tax (VAT) on the resale of used cars and motorcycles between dealers. In this respect reports TASS.
Last year, a bill was developed in the Federation Council to eliminate double collection of VAT on the resale of used cars between dealers.
Primary VAT is now already included in the cost of a new car sold for the first time. If the dealer buys a used car from a real person, he cannot sell the car to another legal person at its real price. The fact is that the second party in such a transaction is obliged to pay VAT on the full price of the car; In this case, the legal entity can only claim VAT deduction on its own profits, thus creating double taxation.
“The law will come into force after the first month from the date of its official publication, but not earlier than the first day of the next VAT tax period. It will be valid for automobile and motorcycle sales made from the date of entry into force of the law. It comes into force,” the statement said.
Previously reportedROAD proposed to impose a fine of 1 million rubles for increasing the mileage of cars.
Source: Gazeta
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