If you decide to resell your company car, the inclusion of VAT on the sales invoice will depend on how you originally purchased it. In case of utility or passenger vehicle, be careful to distinguish them when reselling.
An invoice with VAT, in which cases?
VAT is an indirect tax on consumption. For a professional, this tax is neutral and he only serves as an intermediary between the State and the final consumer who pays VAT.
So, in the case of a purchase of a company car for which you have paid (and recovered) the VAT, you have to pay the VAT to the Public Treasury when it is sold. It is therefore necessary for you to make the invoice indicating the amount of VAT. Using the c corp tax calculator is essential there.
Be careful, distinguish between passenger vehicle and utility vehicle because if one does not allow you to recover VAT, for the other, this is not the case.
Resale of a passenger vehicle
When you buy a passenger vehicle, the purchase is subject to VAT but no deduction is possible. Therefore, during the possible resale, you do not have to submit the sold good to VAT.
Except in special cases, if you have the rear seats removed and you convert the passenger vehicle into a utility vehicle. If this is your case, you are obliged to modify the vehicle registration document!
For certain tourist vehicles or when the activity is oriented towards transport or vehicle trading, it is however possible to recover VAT, this is the case:
- vehicles acquired with the intention of being resold (dealers) ,
- rental vehicles,
- vehicles with more than 8 seats used by companies to bring staff to their place of work,
- Driving school vehicles.
- company car
Resale of a commercial vehicle
Commercial vehicles are all vehicles equipped with two or three seats without the possibility of a bench seat in the rear. This is the case for your vehicle if the mention “VU” (utility vehicle) or CTTE (van) is mentioned on the registration document.
Beware of Pick Up vehicles which under certain conditions have the CTTE mention but cannot claim VAT recovery.
When purchasing your utility vehicle, you were able to recover the VAT. So, when you transfer your vehicle, the VAT must be paid to the Public Treasury. It is therefore necessary to establish an invoice with the amount of VAT.
The advice of our accountants for your business trips
Have you sold your company because but need an alternative for your business trips?
To assess the most advantageous option, compare the use of a personal vehicle for business trips (based on a mileage allowance scale) and the use of a company vehicle.