News 24 | “Zakat and income”: In this case, value added tax is lost when selling used cars

The official VAT account of the General Authority of Zakat and Revenue indicated that the sale of a used car by a person who is not registered for the value added tax regime and who does not exercise economic activity for another person is not subject to VAT.

The account clarification came in response to a question from a person regarding the extent to which a transaction made by a person to buy and sell used cars without having an establishment or a trade register is subject to the system of value added tax.

The account indicated in its response that the buying and selling of used cars is subject to value added tax if sold from an exhibition or from a person registered with the tax system. added value, while the sale of a car to an unregistered natural person who does not exercise economic activity to another natural person is not subject to VAT.