Car sales tax – who does it apply to and how to settle it?
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Car sales tax – who does it apply to and how to settle it?

Not only the buyer, i.e. who is obliged to pay tax on the sales car
It is commonly believe that tax on a purchased car is paid only by its buyer. Meanwhile, in some situations, this obligation also falls on the seller buy and sell car in lahore, i.e. the owner of the car – this group excludes all other forms of ownership, such as leasing, rental, lending or use.

The obligation to pay tax becomes effective when the sale takes place before the expiry of 6 months from the end of the month in which you purchased the car . For example, if you bought them in February, the end of the 6-month period is September 1. Moreover, it does not matter to the Tax Office whether the seller gained or lost on the transaction. You must file a tax return even in the event of a loss.

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How to settle car sales tax and include it in PIT?

You already know whether you are obliged to pay tax on the car you sell. Now see how to settle your taxes with the tax office. The sale of a car should be reported on the PIT-36 form (for the year in which the transaction took place), in the “Income and losses” item, in the “Other sources” section. The tax base is the taxpayer’s income – the difference between the sales price and the cost of purchasing the car, but also the expenses incurred, e.g. purchase of spare parts or installation of a gas installation.

However, the amount of taxation depends on the income you obtained in the previous tax year. Please note that the tax thresholds have been modified – the 12% rate on income obtained after 2024 is calculated up to the ceiling of PLN 120,000.

Loss on sale

What if you bought a car for PLN 20,000 and sold it for only PLN 14,000? In the event of a loss on a sale transaction, is the seller also obliged to pay tax? Yes and no.

Although the seller is obliged to submit a tax return, the Tax Office will not require him to pay tax. This means that the seller must include the sale of the car in his tax return, even if the tax base is PLN 0.

What happens if you evade paying tax?

The obligation to submit annual tax returns applies to everyone who earned income in the previous tax year. If you do not disclose any of them, you run the risk of being audited by the Tax Office.

Pursuant to Art. 54 rupees1 and 2 of the Penal Fiscal Code, evasion of the obligation to pay tax is punishable by a fine of up to 720 daily rates and even a penalty of restriction or imprisonment.

Who has to pay car sales tax?

In certain situations, both the buyer and the seller must pay tax on the sale of the car. The seller must pay tax if the sale takes place within 6 months from the end of the month in which the car was purchased.

How to settle car sales tax?

The sale of a car should be reported in the PIT-36 form (for the year in which the transaction took place), in the “Income and losses” item, in the “Other sources” section.

How to include the sale of a car in PIT?

The tax base should be the taxpayer’s income, i.e. the difference between the sales price and the cost of purchasing the car and the expenditure incurred (purchase of spare parts, installation of a gas installation, etc.).

What are the consequences of not paying car tax?

Failure to disclose income and pay car sales tax may result in a fine of up to 720 daily rates and even restriction or imprisonment.

Do I have to pay tax for selling a car at a loss?

The seller must include the sell car online valuation in the tax return, even if the sale was made at a loss and the tax base is PLN 0. However, in such a situation there will be no obligation to pay tax.

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