How to Report Taxes When a Company Sells Used Cars?

[VanJace]

When a company sells used cars, if it is a non-VAT taxpayer selling used motor vehicles that have been included in fixed assets, the sales amount and tax payable are determined according to the following formulas: 1. Sales amount = tax-inclusive sales amount / (1 + 3%). 2. Tax payable = sales amount × 2%. Below is an introduction to the required materials for tax reporting: 1. Obtain a valid vehicle appraisal report from a second-hand vehicle appraisal agency to determine the selling price; 2. Bring relevant documents such as a copy of the tax registration certificate, copies of fixed asset accounting records, a copy of the "Motor Vehicle Driving License," etc., to the tax bureau to obtain the "Policy Tax Reduction Project Filing Form (Used Vehicle Transaction)" for tax declaration and tax payment.