Can Used Cars Be Deducted for VAT?
1 Answers
The VAT deduction situation for used car transactions is as follows: Cannot Deduct VAT: If an enterprise purchases a used car and obtains a regular invoice, it cannot deduct the input VAT. This is because the seller did not deduct the input VAT when purchasing the car initially, and the selling price includes tax, calculated using a simplified method for payable VAT. Can Deduct VAT: If an enterprise purchases a used car and obtains a special VAT invoice, it can deduct the input VAT based on the invoice: that is, the seller had already deducted the input VAT when purchasing the car, so when selling, a special VAT invoice must be issued, calculating the output VAT at a 17% tax rate.