Can Second-hand Cars Issue Special VAT Invoices for Deduction?
3 Answers
Second-hand cars can issue special VAT invoices for deduction. Documents required for purchasing a second-hand car: Individuals: ID card, and for non-locals needing to register for a local license plate, a valid temporary residence permit (residence permit) is additionally required. Organizations: Original organization code certificate and official seal. Procedures required for purchasing a second-hand car: Check if the car is mortgaged or under court seizure; verify records of traffic light violations and any unpaid fees; obtain a vehicle transfer transaction approval form from the vehicle management office; complete the change procedures for the additional tax certificate; change the road maintenance fee voucher; if there is an insurance policy, complete the transfer procedures. Valid documents required when signing the vehicle transfer contract: Original owner's ID card, new owner's ID card, original and duplicate of the vehicle license, purchase tax certificate, proof of payment of vehicle and vessel usage tax, motor vehicle registration certificate, motor vehicle forensic inspection form, road maintenance fee voucher, insurance policy/card/invoice. All of the above require original documents with copies retained.
As a small business owner who frequently handles company vehicle purchases, the issue of buying used cars and obtaining special VAT invoices for tax deduction is very practical. Generally speaking, if the seller is a business entity and a general VAT taxpayer, they can issue special invoices, which the buyer, as a taxpayer, can use to offset taxes. However, individuals selling used cars typically cannot issue special invoices. The key is to negotiate the identity of the transaction parties and ensure the seller can provide invoicing proof. I recommend buyers verify the seller's qualifications in advance to avoid discovering they can't deduct taxes after payment. Also, note that the invoice amount affects the deduction limit, and sometimes the depreciation calculation for used cars is complex, leaving little room for tax savings. In short, this matter requires careful handling, especially since tax authorities have strict regulations, and it's crucial to clearly outline contract terms in the transaction.
I'm in the used car business and have bought and sold many vehicles. When buyers ask about special VAT invoices for tax deductions, it depends on the seller. If it's a dealership or corporate seller, they might issue special invoices, but only if the buyer is also a registered business taxpayer. Forget about it with private sellers—getting a regular invoice is tough enough. In practice, the special invoice process is cumbersome: sellers need clean tax records, and buyers must provide documentation. I've seen buyers overlook this and end up paying extra when the tax deduction fails. My advice? Negotiate invoicing details upfront and sign a contract to protect your interests. Tax deductions on used cars offer limited benefits anyway—with lower vehicle prices, the deduction amount is small. Focus more on the car's condition and value for money.
