Sale of old company car

This discussion clarifies the Goods and Services Tax (GST) implications when selling an old company car, particularly if the sale price is less than its Written Down Value (WDA). Generally, no GST is liable if the sale price is below the WDA, with WDA calculated as per the Income Tax Act. The rules differ slightly if the vehicle was under a VAT regime versus the current GST regime, with GST typically applying to profit margins in the latter case if Input Tax Credit (ITC) was claimed.