Tax Question RE: Car

[beachy]

I bought a new car and claimed the GST component when I bought the car.

Now I'm selling the car (6 years old) - do I have to pay the GST back when I sell privately?

If I trade the car in and the trade-in price is GST included, do I have to pay the GST back?

 

[Propertunity]

Yes when you sell or trade-in your car, then GST will be included in the price and you will have to remit this to the ATO.

 

[Rob G.]

do I have to pay the GST back when I sell privately?

Either your wording is imprecise or your phrase "sell privately" indicates that your usage of the car has changed from the initial intention when the car was acquired and GST input tax credits claimed.

If that is the case then there should have been a GST increasing adjustment in an earlier period to repay some or all of the input tax credits.

 

[Paul@PFI]

I bought a new car and claimed the GST component when I bought the car.

Now I'm selling the car (6 years old) - do I have to pay the GST back when I sell privately?

If I trade the car in and the trade-in price is GST included, do I have to pay the GST back?

Yes and Yes. But I'm with Rob here. You likely overclaimed the credits upfront / didnt allow for private use / didnt adjust for change of use at the time of the event. GST may (or may not) be payable on the sale and/or a +/- adjustment to a prior BAS needed (maybe both). Personal tax advice is needed. This is a high risk area of audit activity. The ATO regularly look at entities that sell vehicles based on RTA/RMS registration data and match that with ABN's. They detect anomalies and ask questions by sending a questionnaire and trace back to BAS' if needed.

GST credits on a car are generally not 100% eligible. (Its a logbook / FBT thing) Was it a car that cost more than $57K when new ? This may also affect the issue.

More reading : https://www.ato.gov.au/Business/GST...vehicle-and-transport/GST-and-motor-vehicles/