Bought and sold a car within a month: does a legal entity need to pay transport tax
The issue of paying transport tax remains relevant for legal entities conducting transactions involving the purchase and disposal of vehicles. Special attention should be paid to cases where a car is bought and sold within one calendar month, as the taxation procedure has its peculiarities in such situations.
The Tax Service clarified the procedure for paying transport tax by legal entities in the case of purchasing and selling a passenger car within one month.
Taxpayers of transport tax are individuals and legal entities who own vehicles registered in Ukraine that are subject to taxation according to the requirements of the legislation.
The procedure for state registration, re-registration, and deregistration of vehicles is defined by the Cabinet of Ministers of Ukraine Resolution No. 1388 dated September 7, 1998. The document regulates procedures related to cars, buses, motorcycles, trailers, semi-trailers, mopeds, and other vehicles.
According to subparagraph 267.6.5 of the Tax Code of Ukraine, if ownership of a vehicle transfers from one owner to another during the reporting year, the transport tax is calculated separately for each party. The previous owner pays tax for the period from January 1 of the current year until the beginning of the month in which they lost ownership of the vehicle. The new owner, in turn, begins paying tax from the month in which they acquired ownership of the taxable object.
In cases where the same legal entity within one calendar month first registered the purchase of a car and then arranged its disposal and deregistration, the start date of transport tax accrual and the date of its termination effectively coincide. This refers to the beginning of the month in which the legal entity simultaneously acquired and lost ownership of the vehicle.
Thus, if a legal entity purchased a passenger car and sold it within one calendar month, the obligation to submit a transport tax declaration and pay such tax does not arise.
Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp pages, and follow us on Facebook and Instagram to stay updated on the most important events.
