Pickup Truck 'sales Tax'

[bkkmick]

I was talking to a second hand car dealer about selling my MU7.

He says that any pick up size vehicle (including Fortuna/MU7 etc.) incurs a 100k sales tax.

Fact or fiction?

Cheers

Mick

[soi41]

Fiction!!

Look for another dealer or put it for sale here: www.taladrod.com

[impulse]

Just bought a used (very used) pickup and paid just a little over 100K all in.

No taxes as far as I could tell, and the previous owner was an English as a primary language guy so there were no mis-communications.

[Woodsie888]

Fiction Mick.

He has a VAT liability, which is precisely 7% of his margin. No more no less.

If he buys a car for 1,000,000 he claims back 65,420.56 input tax.

Assuming he sells it for 1,100,000 he pays 71,962.62 therefore his tax liability is 6,542.06. or to put it another way, his 100,000 margin includes VAT which is 6542.06.

Alter the figures to suit your car value and you have the answer.

[Rimmer]

Moved to the Motoring Forum

[anon210]

Fiction Mick.

He has a VAT liability, which is precisely 7% of his margin. No more no less.

If he buys a car for 1,000,000 he claims back 65,420.56 input tax.

Assuming he sells it for 1,100,000 he pays 71,962.62 therefore his tax liability is 6,542.06. or to put it another way, his 100,000 margin includes VAT which is 6542.06.

Alter the figures to suit your car value and you have the answer.

One correction in this case... Input tax is only claimable if VAT has been charged by the seller who is registered to VAT. Typically not a private person.

"Input Tax" is a tax charged by another registered person on any purchase of goods or provision of services. The term also includes any tax charged on imported goods.

http://www.rd.go.th/publish/6043.0.html

So, in this case, no input tax to claim back.

[Woodsie888]

Fiction Mick.

He has a VAT liability, which is precisely 7% of his margin. No more no less.

If he buys a car for 1,000,000 he claims back 65,420.56 input tax.

Assuming he sells it for 1,100,000 he pays 71,962.62 therefore his tax liability is 6,542.06. or to put it another way, his 100,000 margin includes VAT which is 6542.06.

Alter the figures to suit your car value and you have the answer.

One correction in this case... Input tax is only claimable if VAT has been charged by the seller who is registered to VAT. Typically not a private person.

>"Input Tax" is a tax charged by another registered person on any purchase of goods or provision of services. The term also includes any tax charged on imported goods.

http://www.rd.go.th/publish/6043.0.html

So, in this case, no input tax to claim back.

You are quite correct when dealing with a private seller or buyer, but in this case the OP does mention a 'second hand car dealer' who mentioned tax.