When selling or buying a car from someone, we should remember about several obligations resulting from the regulations. Especially since if we do not complete them, there may be serious financial consequences.
The first thing we must remember is that the obligations in question appear both when it comes to selling a car and donating it. Therefore, we will use the concept of divestment, which covers both of these cases.
Obligations towards the tax office
Firstly, if it comes to the purchase of a car from a private person who does not conducts business activity in this respect, we must report this fact to the tax office. Because, in accordance with the provisions of the Act on Tax on Civil Law Transactions (PCC), there is then an enrichment, on which tax must be paid. You need to report to the tax office with the sales document and the completed PCC-3 declaration.
Remember: The purchase of a new or used car from an entrepreneur (e.g. from a second-hand shop) is generally subject to VAT, therefore the application of the TCLT Act is excluded in such situations. Generally, it can be said that the obligation to pay PCC does not apply to items purchased on an invoice (VAT and VAT-margin).
In the case of buying a car, we have 14 days from the conclusion of the contract to submit this declaration to the tax office. It is worth not to be late, because the penalty can be large. The minimum amount is 10%. the current minimum wage. However, the official may charge a higher – up to twenty times minimum wage. From January 1, 2023, it is PLN 69,800, and from July 1, when the second increase in the national minimum wage occurs, it will be PLN 72,000. zloty.
PCC from the market value
There is one more catch with PCC. It is calculated from the market value, not the actual selling price. This means that at a price lower than the market price, the tax office will order us to equalize the tax amount and charge interest.
– The tax should be calculated at the rate of 2 percent of the market value of the sale item. If the value of the subject of sale specified by the buyer (taxpayer) differs from the market value, there will be a risk that the tax authority will request the taxpayer to determine, increase or decrease it within a period of not less than 14 days from the date of delivery of the request, while providing the value according to its own, preliminary assessment – explains Jakub Owczarek, manager and legal adviser from the tax advisory company Filipiak Babicz Tax.
As he adds, in a situation where the taxpayer does not respond to the tax office or re-determines the value of the car in an amount that does not correspond to the market value, the tax office will do it itself.
– Make the determination taking into account the opinion of an expert or the appraiser’s valuation submitted by the taxpayer. If the tax authority appoints an expert, and the value determined taking into account his opinion differs by more than 33 percent. from the value provided by the taxpayer, the costs of the opinion are borne by the taxpayer – explains Owczarek.
Some may be tempted to not report transactions to the IRS. However, if the tax office finds out about the agreement, for example during a tax inspection, it then the tax rate will be as high as 20%. the market value of the object of sale.
– Failure to submit the PCC-3 declaration on time may result in imposing a high fine on the taxpayer. The only way to avoid a penalty for not paying the tax on civil law transactions and not submitting the PCC-3 declaration is the so-calledactive griefHowever, this option can be used only if penal-fiscal proceedings have not yet been initiated – sums up the legal adviser.
Responsibilities to the communications department
Changing the owner of the car is also an administrative obligation for both the seller and the buyer. Such a transaction should be reported to the communication department of the city office, poviat starosty or, in the case of Warsaw, the district office. They transmit data to the national CEPIK database. Here the deadline is longer – 30 days, and the penalty is lower than in the case of failure to notify the tax office, because from 200 to 1000 PLN.
In order to report the disposal of a vehicle, you must submit a written notification. It must contain the following data:
– VIN number of the vehicle, – current registration number of the vehicle, – make and model of the vehicle, – name and surname, PESEL and registered address of the seller, – name and surname, PESEL and registered address of the buyer, – photo or scan of the document confirming the sale of the vehicle ( purchase and sale agreement or donation agreement, it is worth having the original with you).
When applying to the office, we will also need a valid document certifying our identity. This can be an ID card, passport or driving license. A person who is not a Polish citizen will also have to show his/her residence card.
The above procedure applies if we report the sale during a visit to the office. At the same time, it is worth remembering that we can also do it online if we have a Trusted Profile.
Using a simple form, which is available under the “Drivers and vehicles” tab, we will provide all the above data. After completing the application, we will receive a message (Official Submission Confirmation) from the office to the ePUAP inbox.
Car sales and obligations towards the insurer
Another institution to which we must report the sale of the car is the insurance company. In this case, this obligation exists only for the seller, who has 14 days to do so.
If he fails to do so, it will be after the expiry of the previous policy the insurer will issue him another one and will have the right to demand payment of the premium. This is because the compulsory third party liability insurance policy renews automatically – unless the car owner has paid the previous one in full, has not terminated it or has not reported the sale of the car.
Pursuant to the regulations, until the insurer is notified of the change of ownership of the car, the seller bears “joint and several liability” with the buyer for the payment of the insurance premium from the date of sale to the date of notification to the insurer. It may even happen that the insurer will file a lawsuit for payment of the overdue premium, since it did not know about the sale and provided protection.
“Disregarding our duties can have unpleasant consequences for us”
– A typical situation, which is the change of the owner of a motor vehicle, brings with it obligations. This is very important, because these obligations result directly from the law, and disregarding them can have an unpleasant effect on us in the form of financial liabilities. Amounts reaching thousands of zlotys are the order of the day – emphasizes Damian Ziąber from the Insurance Guarantee Fund.
– Here’s one piece of advice. Let’s check who, what and to whom should report if we are a party involved in an action that results in a change of the owner of a motor vehicle – he adds.
According to the UFG, the most common reason for the lack of third party liability insurance for the owner of a motor vehicle are cases when the seller’s policy has expired and the buyer has not concluded a new insurance contract on time. The fund annually identifies nearly 330,000 vehicle cases remaining for a certain period of the year without valid third party liability insurance.
Moving such a vehicle exposes its user to the risk of huge debts. The amount of fees for no liability insurance is one risk, but in the event of damage caused by an uninsured vehicle, you will have to cover the costs of compensation out of your own pocket.
At the end of 2022, UFG ran over 18,000 cases in which uninsured perpetrators owed almost PLN 340 million. The average debt value of such a perpetrator is nearly PLN 20,000. zloty. It is worth juxtaposing it with the average price of a motor liability insurance policy, which is about PLN 500-600.
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