The sale of a car and the tax on means of transport

Service-Tax

Every entrepreneur is aware of his obligations in the field of income taxes and value added tax. In the maze of regulations, however, one should not forget about other tax obligations towards the state. One of such obligations is the tax on means of transport. In today's article, we will deal with the issue of tax payment when a car is sold.

Characteristics of the tax on means of transport

When starting the analysis of the issue, it must be remembered that the tax on means of transport applies to strictly defined vehicles. As Art. 8 of the Act on Local Taxes and Fees, tax on means of transport is subject only to:

  • trucks with a maximum permissible weight of more than 3.5 tons and less than 12 tons;

  • lorries with a maximum permissible weight equal to or greater than 12 tonnes;

  • tractors and ballast tractors adapted for use with a semi-trailer or a trailer with a maximum authorized mass of a combination of vehicles between 3.5 tonnes and less than 12 tonnes;

  • tractors and ballast tractors adapted for use with a semi-trailer or a trailer with a maximum authorized mass of a combination of vehicles equal to or greater than 12 tonnes;

  • trailers and semi-trailers which, together with the motor vehicle, have a permissible total weight of 7 tonnes and less than 12 tonnes, except for those related solely to agricultural activity conducted by an agricultural tax payer;

  • trailers and semi-trailers which, together with the motor vehicle, have a permissible total weight equal to or higher than 12 tonnes, except for those related solely to agricultural activity conducted by an agricultural tax payer;

  • coaches.

The tax on means of transport is the income of municipal budgets. The tax authority here is, therefore, the commune head, mayor or city president, respectively. The tax is paid to the municipality in which the taxpayer resides or is established.

The tax obligation is imposed on the taxpayers who are the owners of the above-mentioned means of transport. Moreover, the vehicle must be registered in Poland. Thus, it follows from the above that the payment of the tax is closely related to the property. As a result, renting the means of transport, leasing or other similar agreement does not change the taxpayer - it will still be the owner of the vehicle.

This is confirmed by the individual interpretation issued by the Mayor of Suwałki of 15 July 2009, No. owner.

Car sale

Naturally, there may be a situation in which a means of transport is sold against payment. In this case, it should be remembered that the tax obligation on the buyer's side arises from the first day of the month following the month in which the means of transport was purchased. On the other hand, the seller is obliged to do so until the end of the month in which the transfer of ownership took place.

Example 1.

Taxpayer A sold taxpayer B a truck on October 23. Taxpayer A will have the tax obligation until October 31, while taxpayer B will be obliged to pay tax on means of transport from November 1.

An additional obligation of the entrepreneur who sells the vehicle is the need to correct the declaration in the event of circumstances affecting the emergence or expiry of the tax obligation, within 14 days from the date of these circumstances. This obligation results directly from the wording of Art. 9 sec. 6 of the Act on Local Taxes and Fees. This is a very important provision, as in the event of failure to report the sale, the tax obligation will still be borne by the previous owner. The declaration DT-1 with appendix DT-1 / A is the relevant tax declaration.

Example 2.

Taxpayer A sold the truck on October 1. He did not notify the competent authority of this fact by submitting a correction of the tax declaration.As a consequence, he is still a taxpayer of the tax on means of transport, although he does not physically own the vehicle and does not own it.

It is worth quoting here an excerpt from the judgment of the Supreme Administrative Court of February 22, 2017, II FSK 3302/14:

“No fragment of the above-mentioned provisions shows that the necessity to pay the tax on means of transport depends on the use of the vehicle or its physical possession. This means that the fact that the vehicle was not actually used, due to its scrapping or the applicant's imprisonment, does not mean that the tax obligation was terminated. For this, it is necessary to deregister the vehicle or issue a decision of the registering authority to temporarily withdraw the vehicle from traffic.

Contrary to the allegations of the cassation appeal, the reasoning of the judgment under appeal does not provide any arguments that would allow the conclusion that the Court of first instance misinterpreted these provisions, misunderstanding them. The Provincial Administrative Court in Lublin referred to these unambiguous provisions and explained them significantly for the case, both in terms of the emergence of the tax obligation and its expiry. Therefore, it should be emphasized once again that in the case under examination none of the conditions resulting in the expiry of the tax obligation has been met. As long as the vehicle in question is registered, its owner is liable for tax on means of transport, even if he does not own or use the vehicle ”.

Car sale and notification

The obligation to notify the relevant institution about the sale of the means of transport results not only from the act on local taxes and fees. As § 13 sec. 2 of the ordinance of the Minister of Infrastructure of 22 July 2002 on the registration and marking of vehicles, in the case of a notification of the sale of a registered vehicle, the previous owner shall attach to the notification a copy of the document on the basis of which the vehicle was sold. Such notification should be made by the taxpayer within 30 days from the date of sale of the vehicle. The registration authority is understood as the staroste or the Masovian Voivode, respectively.

The consequences of non-compliance with the above provisions may be very serious for the taxpayer selling the means of transport. In extreme cases, the taxpayer may be required to pay the tax even despite the lack of ownership or the lack of ownership of the vehicle. All formalities related to the notification of the competent authorities are the responsibility of the seller, who must ensure that the DT-1 declaration is corrected within 14 days from the change of owner.