The Federation Council has abolished the reimposition of value-added tax (VAT) on the resale of cars between dealers.
This decision, as reported by Autonews, is aimed at simplifying the process of trade between showrooms and implies lower prices for certain models of cars.
Representatives of the automobile market note that the proposed bill will significantly facilitate procedures for dealers and allow them to reduce the cost of cars. Previously, when used cars were resold between dealers, VAT was charged a second time, despite the fact that this tax had already been paid on the initial sale in Russia. The new law annuls this double tax, which makes it possible to conduct transactions between dealers on the same terms as when selling a car to an individual.
According to Alexey Podshchekoldin, head of the Russian Association of Automobile Dealers, the abolition of double VAT will significantly reduce dealers' costs and allow them to offer more attractive prices for used cars. Such a decision also contributes to balancing prices between regions, correcting the situation with an excess of cars in some regions and their shortage in others.
Earlier, experts predicted that prices for Chinese cars would drop by 10-15% in 2024.