VAT tax on a used car?

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mem
Rank: Chile Forum Citizen
Posts: 291
Joined: Tue Nov 24, 2015 11:18 am

VAT tax on a used car?

Post by mem » Sat Oct 06, 2018 4:57 pm

When browsing chileautos I sometimes see dealers saying the listed price does not include 19% VAT on used cars, many years old

I understand paying VAT on a brand new car. But on used?

When I bought my last car from a private seller there was no surcharge for any tax.

Can used car dealers charge VAT on used cars? Is it only used car dealers and not private sellers? I'm looking at used cars in Temuco and Santiago

Anyone know the deal?

41southchile
Rank: Chile Forum Citizen
Posts: 267
Joined: Mon Jun 12, 2017 2:39 pm
Location: Lakes Region

Re: VAT tax on a used car?

Post by 41southchile » Sun Oct 07, 2018 10:51 am

It depends on how old the vehicle is, possibly 5 years old ? I cant remember, but if it has been bought with IVA and the company is claiming that IVA then when it is sold used, it must be sold with IVA as I say up to x ammount of years. Private sellers wont be charging IVA because that was not a cost they could get back when they bought in first place.
In the Lakes Region Chile for 6 years. It looks like New Zealand in some ways, and is nearly at the bottom of the world too, but there the similarities end.

mem
Rank: Chile Forum Citizen
Posts: 291
Joined: Tue Nov 24, 2015 11:18 am

Re: VAT tax on a used car?

Post by mem » Tue Oct 09, 2018 10:56 am

I thought the 5 year rule made sense, but then i just saw a listing that older cars like a 2007 with over 120k on it with VAT included. I wish there was law or something I could reference. I wonder if this is somehow a scam to increase the price on old used cars

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