Al-Marsad newspaper: The Zakat Tax and Customs Authority has confirmed that the sale of used cars by people not registered in the tax system is not subject to value added tax. Because it does not carry out economic activity.
The authority clarified through the account “Ask for Zakat, taxes and customs” in response to a question from a citizen, in which he stated: “If you buy a used car from a private individual and not from an exhibition outside the Kingdom, there is is a tax or only customs “, that the sale of used cars is subject to value added tax if sold by a dealer or by a person registered in the system of value added tax. As for the sale of a car by an unregistered natural person who does not carry out economic activity at another structure or natural person, it is not subject to value added tax.
He added that customs duties are imposed at 5% of the value of the vehicle and the value added tax is calculated at 15% of the total value of the vehicle, together with customs duties in cases due.
Dear Khaled, To clarify you, customs duties are imposed at 5% of the value of the vehicle and the value added tax is calculated at 15% on the total value of the vehicle with customs duties.
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– Ask for zakat, taxes and customs (@Zatca_care) October 9, 2022
