1, object of collection: used cars are tax-free for individuals, and belong to general taxpayers of value-added tax and other small-scale taxpayers or individual industrial and commercial households. The income from the sale of used cars should be combined with other business income to declare and pay taxes, and other taxpayers, including institutions, government departments, administrative organs and social organizations, should pay value-added tax and other taxes according to regulations.
2. Information to be provided: VAT taxpayers and non-VAT taxpayers other than second-hand car dealers and auction companies shall provide information according to the following requirements when selling their used motor vehicles, and Party B will invoice for second-hand cars. Incomplete information shall not be issued. Party B shall paste the required information on the corresponding used car invoice stub and keep it for future reference.
According to Article 1 of the Announcement of State Taxation Administration of The People's Republic of China Hubei Provincial Taxation Bureau on the Collection and Management of Value-added Tax on Used Car Trading (Announcement No.202 1 of Hubei Provincial Taxation Bureau of State Taxation Administration of The People's Republic of China): "Units and individuals that directly sell used cars shall handle it in accordance with the following provisions:
(1) Units and individual industrial and commercial households that have gone through tax registration to directly sell used cars should issue their own VAT invoices or apply to the competent tax authorities, exchange the Uniform Invoice for Used Car Sales in the used car trading market with the VAT invoices, and declare and pay VAT on their own.
(2) Units and individual industrial and commercial households that have not registered for tax directly sell used cars should apply to the competent tax authorities where the institution is located (residence) or where the used car market is located to open VAT invoices and declare and pay VAT, and exchange the Unified Invoice for Used Car Sales in the used car market with the VAT invoice.
(3) Natural persons who directly sell their used second-hand cars are exempt from value-added tax, and should apply to the second-hand car trading market to issue a Unified Invoice for Second-hand Car Sales.