Calculate the correct taxable amount
For new vehicles, separate qualifying LTA regulatory charges such as COE, ARF, registration fee and road tax from the selling price; use the actual net charges after relevant rebates. Other business charges are not automatically deductible. Imported vehicles attract GST on CIF plus customs duty. Prices quoted to the public must include GST so customers see the final payable amount.
Select the second-hand scheme carefully
The gross-margin scheme taxes the sale/purchase price difference when eligible; the discounted-sale-price scheme taxes fifty percent of the selling price. A used vehicle previously registered overseas is excluded from the stated Singapore second-hand definition. Non-traders occasionally selling business vehicles use the discounted scheme. Retain vehicle-specific records and use the relevant invoice template for hire purchase, trade-ins, bodies and other charges.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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