Sale on Car
Querist : Anonymous
If personal, No VAT otherwise a BIG Yes...
Querist : Anonymous
Querist : Anonymous
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### 1. **Is VAT applicable on sale of your car?**
* **If the car is for personal use (not used in business)**, then **no VAT is applicable** on the sale.
* Sale of a personal vehicle is considered a **transfer of personal asset**, which is outside the scope of VAT.
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### 2. **If you are registered under VAT (like DVAT) and the car is used in business**
* If the car is **used for business and shown in your books/accounts as a business asset**, VAT implications can arise.
* But **since you did not claim input VAT credit on purchase**, VAT on sale **is generally not applicable**.
* If input credit was claimed, VAT may be payable on sale value as per local VAT rules.
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### 3. **Summary**
| Scenario | VAT Applicability |
| ---------------------------------- | ---------------------- |
| Personal car sale | No VAT |
| Business car, input credit claimed | VAT applicable on sale |
| Business car, no input credit | Generally no VAT |
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If you want, I can help you draft a simple note or VAT invoice for the sale or advise on other tax implications like income tax on capital gains from sale of car. Would you like that?
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