What is the VAT on a used car in Thailand - Must be different if purchased from a dealer

[Longwood50]

I am confused on the VAT on a used car in Thailand.  Is the 7% VAT charged on the purchase price of a used car.  I bought one last year and was not charged a VAT.  It could be the dealer just had the car on consignment from the bank who repossessed it.  

I was told if it was a purchase from a private party there was no VAT but even a used car purchased from a dealer would have the 7% VAT.

Can someone set me straight on what the exact answer is. 

[FritsSikkink]

If you buy from a business, you pay VAT (is included in the price you pay).

If you buy from a person, you don't. 

[Longwood50]

2 hours ago, FritsSikkink said:

f you buy from a business, you pay VAT (is included in the price you pay).

If you buy from a person, you don't. 

Do you know about if you buy from an Auction? 

[Gottfrid]

I will make it simple for you. VAT has nothing to do with buying new or used. If you buy something from a company as a private person you will pay VAT. If your buy something from a private person as a private person, you will not pay VAT. If a company buy something from a private person, the private person can not charge VAT. If a company buys from another company VAT will be charged by the selling company, and be deducted before taxes for the buying company.

[Longwood50]

2 minutes ago, Gottfrid said:

I will make it simple for you. VAT has nothing to do with buying new or used. If you buy something from a company as a private person you will pay VAT. If your buy something from a private person as a private person, you will not pay VAT. If a company buy something from a private person, the private person can not charge VAT. If a company buys from another company VAT will be charged by the selling company, and be deducted before taxes for the buying company.

Thanks, that does make sense although in the USA any sale is considered taxable.  If you have a new car it is taxed, when sold from one private party to another it is taxed again, and sold again taxed yet again.  All taxed on the price the new purchaser paid for the car.  That is one reason why leases particularly on expensive cars are popular.  You pay the VAT/sales tax only on the amount of the payment.  So if you keep the vehicle for only lets say 3 years you pay only a fraction of what you would have paid had you purchased the car, paid the full sales tax and then sold it. 

Do you know if this applies to Auctions?   I would not think they would be taxed because they are not a retail dealer 

[Gottfrid]

3 minutes ago, Longwood50 said:

Thanks, that does make sense although in the USA any sale is considered taxable.  If you have a new car it is taxed, when sold from one private party to another it is taxed again, and sold again taxed yet again.  All taxed on the price the new purchaser paid for the car.  That is one reason why leases particularly on expensive cars are popular.  You pay the VAT/sales tax only on the amount of the payment.  So if you keep the vehicle for only lets say 3 years you pay only a fraction of what you would have paid had you purchased the car, paid the full sales tax and then sold it. 

Do you know if this applies to Auctions?   I would not think they would be taxed because they are not a retail dealer 

Actually I do nor know for sure. There can be two scenarios, because the tax will definitely be there.

 

1. The VAT is included in the total amount you buy for.

2. The VAT is put on top of the price you buy for.

 

VAT will definitely exist, but can be in any form.

[Longwood50]

1 minute ago, Gottfrid said:

1. The VAT is included in the total amount you buy for.

2. The VAT is put on top of the price you buy for.

 

VAT will definitely exist, but can be in any form.

True but if the car book is coming from a private party or perhaps a finance company that repossessed it would that not be the same as not buying from a retail dealer? 

[Gottfrid]

57 minutes ago, Longwood50 said:

True but if the car book is coming from a private party or perhaps a finance company that repossessed it would that not be the same as not buying from a retail dealer? 

That does still not matter. it only has to do with if you are buying from a registered company. If the seller is a registered company. In that case VAT is applied.

[jackdd]

Yes, they pay VAT when selling used vehicles, but I'm not sure how it's calculated.

I know that for example in Germany when buying/selling used items, the dealer only pays the VAT on the difference between buying and selling price. So if for example he would buy a car for 500k, and sells it for 600k, he would pay VAT only on the 100k profit.

Maybe in Thailand it's similar, or maybe in Thailand they pay VAT on the whole price, or maybe some other option of which I didn't think yet.

[FritsSikkink]

3 hours ago, Longwood50 said:

Do you know about if you buy from an Auction? 

Auction cost come on top of the price. 

[FritsSikkink]

38 minutes ago, jackdd said:

Yes, they pay VAT when selling used vehicles, but I'm not sure how it's calculated.

I know that for example in Germany when buying/selling used items, the dealer only pays the VAT on the difference between buying and selling price. So if for example he would buy a car for 500k, and sells it for 600k, he would pay VAT only on the 100k profit.

Maybe in Thailand it's similar, or maybe in Thailand they pay VAT on the whole price, or maybe some other option of which I didn't think yet.

Anywhere you pay VAT on the whole price but can deduct VAT which you paid.

[FritsSikkink]

3 hours ago, Longwood50 said:

True but if the car book is coming from a private party or perhaps a finance company that repossessed it would that not be the same as not buying from a retail dealer? 

A (finance) company pays VAT

[thailand49]

12 hours ago, Longwood50 said:

Do you know about if you buy from an Auction? 

If " Business "

[Sydebolle]

It is 7%, no difference on the rate. Applicable to any and all products which do not remain untouched, i.e. non-processed products like vegetables, meats, seafood etc.
Once your meat gets minced and stuffed into a pie and vegetables into a health smoothie, then someone "added" value to it and value-added-tax applies. 

Either you got an unofficial sale, i.e. that sale never got recorded in any accounting or it had been included. Second-hand cars usually never change officially hands (except they were owned by a taxable entity like a Co., Ltd. or similar). 

[shady86]

You can always request for a tax invoice if there is VAT charged. Some sellers without VAT and business registration take advantage by jacking up price by 7% for this. 

[Liverpool Lou]

On 8/25/2021 at 8:19 PM, Longwood50 said:

On 8/25/2021 at 5:56 PM, FritsSikkink said:

f you buy from a business, you pay VAT (is included in the price you pay).

If you buy from a person, you don't. 

Do you know about if you buy from an Auction? 

If the business running the auction is registered for VAT, and it  will be, VAT will be charged. 

Edited August 27, 2021 by Liverpool Lou

[Liverpool Lou]

On 8/25/2021 at 8:46 PM, Longwood50 said:

Do you know if this applies to Auctions?   I would not think they would be taxed because they are not a retail dealer 

If the auctioning company is VAT-registered it has to charge it.

[Liverpool Lou]

On 8/25/2021 at 8:55 PM, Longwood50 said:

True but if the car book is coming from a private party or perhaps a finance company that repossessed it would that not be the same as not buying from a retail dealer? 

No.  You'd be buying from the company that is auctioning the vehicle.

[Liverpool Lou]

On 8/26/2021 at 12:14 AM, FritsSikkink said:

Anywhere you pay VAT on the whole price but can deduct VAT which you paid.

Not if you're a private buyer.