How to get a tax refund for buying a car

Can I get income tax back on a car purchase?

Due to constant changes in modern legislation, the question increasingly arises: is there a tax refund when buying a car?

Many residents of Russia have seen from their own experience the pleasant possibilities of providing property tax deductions following the acquisition of real estate.

Therefore, the question of whether and how an income tax refund is provided when purchasing a car in 2019 is quite logical and relevant.

Cars are quite expensive goods . The situation is further complicated by the fact that most vehicles are purchased using credit funds.

It is for this reason that the possibility of a tax refund for the purchase of a car in the form of additional funds would be the optimal help for paying the next loan installments.

In this information article, you can understand the following questions: in what cases is a 13% tax refund due during the acquisition process, what tax deductions exist, how best to save during the sale process, and also how not to save.

Possibility of return 13 percent

The law provides special benefits for categories of citizens specified in legislative documents.

One of the most popular options is the return of previously paid tax on income received, the amount of which is 13%.

These material assets can be returned by people who paid personal income tax to the state during one calendar year and made certain major acquisitions.

Those citizens who have spent large sums on the following purposes can be guaranteed to return 13%:

purchase or construction of real estate;
obtaining higher or specialized education;
carrying out therapeutic and diagnostic procedures;
charity.

These are expenses that fall into the category of necessary and important for life; it is for this reason that certain tax benefits are provided for them.

Purchasing a vehicle is not included in the list of essential items, therefore the answer to the question whether income tax can be refunded on the purchase of a car is negative.

Despite this, there are several options with which you can save your expenses . Among them, the possibility of a tax deduction when selling a car deserves special attention - this is an ideal opportunity to save capital.

Basic options for saving

As you know, from the funds raised in the process of selling a car, you will need to pay 13% of the proceeds..

In other words, selling a car means making a certain profit, which must be reported by April 30 of the year following the date of receipt of payment.

The tax will need to be paid no later than July 15, within 2.5 months after the report is compiled and sent . This is a definite rule that also has some exceptions.

For example, you will not need to fill out a declaration and pay tax if the vehicle has been owned for more than 3 years.

This period of car ownership can be calculated in different ways, it all depends on the option of obtaining ownership of the car:

Regular purchase . In this case, the time of car ownership will be counted from the very moment of purchasing the car.
Inheriting a vehicle . In this case, the beginning of ownership is the day of death of the former owner.
Receiving a car as a gift . The tenure period here begins from the moment the contract is signed.

If three years have not passed after receiving ownership of the vehicle and you want to sell it, by law you will have to pay 13% of the sale price.

It is worth considering options that would allow you to avoid paying the 13% tax.

Selling without profit

This is the best option for saving money. This opportunity opens up when paying the tax accrued on the difference in the value of the car at the time of its sale and purchase, even if they do not coincide at all.

This technique is also called “sale cost of minutes purchase price”. In this case, personal income tax will be calculated as follows - sale price - cost of initial purchase * 13%.

This technique can only be applied if the original documents are stored, and the costs must be attributed to one car.

If the car was sold for a price lower than the purchase price, the tax may not be paid at all. If you have owned the car for less than three years, you will still have to fill out a declaration.

Standard deduction

This is the best option for inheritance and gift.

Modern legislation provides for a special property tax deduction on cars and amounts to 250,000 rubles. This is the amount on which no tax is paid.

In other words, if the amount from the sale of a car is no more than 250,000 rubles, the 13% tax is not paid.

So, if a car donated or inherited was sold for 240,000 rubles, then in the process of using the standard deduction you will not have to pay any tax deductions.

Application of the netting method

If last year a person not only sold a car, but also acquired certain property, it is possible to arrange mutual tax compensation of one for the other.

For example, if an apartment was purchased for 1.5 million rubles and a car was sold for the same amount, you will need to pay 13% on the sale of the car, and then return it as a tax deduction from the purchased housing.

Due to the fact that the transaction amounts are equal, nothing will need to be paid.

To receive personal income tax reimbursement for a special property deduction, you will need to comply with one important rule. A person can use it only once, and a situation is also acceptable when he has the remainder of the purchased home at his disposal.

General procedure for processing documents

To carry out income tax manipulations, you need to make sure that all documents are in order . Many people treat automobile papers not as responsibly as those that belong to apartments and various real estate properties.

The tax organization will most likely need to provide the following important papers necessary to resolve the issue of how to receive a refund:

PTS with strictly fixed information data regarding the transaction. As soon as the data for the new owner is entered into the passport, it is better to make a copy of it.
An official agreement on a transaction , in particular on the sale of a car, where the amount from the sale of the car is clearly stated.
Documents from a financial institution . This may include an account statement where, after the sale, funds from the sale were transferred; all necessary payments, receipts, receipts and checks will be required. In other words, confirmation of receipt of material funds will be required.

As soon as the vehicle is sold, the owner must submit a 3-NDFL declaration . This must be done before April 30, regardless of whether income tax is being refunded or charged.

Until July 15 of the year following the reporting year, that is, the one in which the transaction was carried out, you will need to pay personal income tax.

To receive a refund, you will need to attach an application written in a special form to the package of documents, as well as copies of your Taxpayer Identification Number (TIN) and passport.

In the process of drawing up and submitting a declaration of income received and a correctly written statement from a legal point of view, you need to make copies of documents, but also be prepared for the fact that you will need to present the originals.

It is also strongly recommended not to take the designated deadlines for submitting documents lightly.

The question of whether it is possible to submit a declaration later than the deadline, for example, next month, can only be answered in the negative.

In 2019, a sanction penalty may be imposed for violating the deadlines for completing and submitting documents to a tax organization.

This also affects subsequent more serious civil liability, which can sometimes reach legal proceedings.

Deduction from a car purchased on credit

Many car owners are interested in the question of whether it is possible to return tax on the purchase of a car on credit.

In the modern list of tax benefits, in addition to the return of personal income tax for the acquisition of a particular property, it is possible to return the deduction of loan funds from the amount of interest that was paid for the acquisition of property.

Important! Based on all the information above, it is impossible to return personal income tax for a car that was purchased on credit under this legislation.

If such an opportunity arises, it will only be after the adoption of special amendments to established laws and only with various restrictions.

Currently, citizens have the opportunity to receive a tax deduction only from the sale of a car; unfortunately, not yet for the purchase.

Possibilities of the new version of the law

Some deputies have prepared a bill regarding the inclusion of a vehicle in the list of property, after the acquisition of which it will be possible to qualify for a deduction. If it is adopted, it will be only with some restrictions.

Among the most likely of them are:

the vehicle must be new;
the return applies only to domestic brands of cars or relatively budget vehicles from foreign manufacturers, but only those produced in Russia;
the total amount of the deduction should not exceed 500,000 rubles.

After deducting such an amount, you cannot use this opportunity again; it only works once. It is also expected to compile a list of specific brands and models of vehicles.

If a deduction is provided, it will only be for those citizens who buy their first car.

This law is being considered and is quite attractive for the reason that government authorities are aimed at stimulating consumers to purchase domestic cars, that is, helping to develop the Russian automotive industry.

If this law comes into force, it will be possible to return up to 65,000 rubles.

For example, if a car that meets the requirements was purchased, the cost of which is 400 thousand rubles, the amount of personal income tax intended for return will be equal to 400,000 × 13% = 52,000 rubles. It will no longer be possible to receive the remaining 13,000 rubles.

If a car is purchased for 600,000 rubles, where the amount exceeds the established norm by 100,000 rubles, the deduction amount will be equal to 65,000 rubles, that is, 500,000 × 13% = 65,000.

Summing up

Based on everything said above, it can be noted that in the near future, a tax deduction in the process of purchasing a car will be exactly the same as all other tax deductions and benefits.

If the question of how to return income tax from the purchase of a car is resolved universally and at the legal level, this procedure will be beneficial to everyone without exception - the state and car owners.

As soon as such a law comes into force, all necessary changes will be made and it will be possible to return the legal 13% of the purchase of the car . On this basis, buyers will not want to underestimate real amounts in contracts.

Accordingly, with the tax refund from the purchased car, the personal income tax refund during the sale of the vehicle will also increase. This is a mutual benefit.

Tax deduction when buying a car

In Russia there are several categories of deductions that are provided to people under certain conditions. They are divided into four groups: standard, social, property and professional. The motor vehicle is the property of the taxpayer. In this regard, citizens have a question about whether it is possible to return tax on the purchase of a car.

Legislative regulation

The rules for granting property tax deductions are regulated by Article 220 of the Tax Code of the Russian Federation. According to Part 1, the taxpayer has the right to return previously paid income tax when purchasing the following objects:

a plot of land with buildings located on it;
apartments, houses or shares in residential premises;
building your own home.

If a person borrowed funds from a bank to purchase or construct an object, then he has the right to issue a deduction for the amount of mortgage interest actually paid, but not more than 3 million rubles.

Note: Tax refunds on car purchases are not provided for in the Tax Code of the Russian Federation.

Even if vehicles were purchased using borrowed funds from a bank, reimbursement of costs for paying interest on a consumer loan is not provided for by law.

This is primarily due to the fact that the deduction is provided only for the purchase of socially significant items. A car is considered a luxury item.

Selling a vehicle

Citizens of the Russian Federation are required to pay personal income tax on all income. Including when selling your own property. Tax preferences are provided to the car seller, not the buyer.

To pay personal income tax, you must submit a 3-NDFL declaration to the tax authority by April 30. The tax itself must be paid by July 15.

The amount of the benefit when selling a car depends on the period of ownership of the property:

over 36 months – no tax is paid;
up to 3 years – 250 thousand rubles.

Example 1: Ivanov bought Lexus in 2012 for 1.2 million rubles. In 2018, he sold it for 800 thousand. The tenure period was 6 years. A citizen does not have to pay tax on income received from the sale of a car.

Example 2: Malkov bought a Lada Granta in 2016 for 570 thousand rubles. A year later, he sold the car for 600 thousand. The tenure was less than 3 years. In this case, he must pay income tax. The income in this example is 30,000 (600,000-570,000). This amount must be multiplied by 13%. The total amount to be paid is 30,000*13%=3,900 rubles.

Example 3: Lovchikov bought a Priora in 2017 for 300 thousand rubles. In 2018, he sold it for 150 thousand. The tenure was less than 36 months. But in this case the tax is not paid, since the income is less than 250,000 rubles.

Important to know: Even if the amount of calculated tax is zero, a citizen still needs to submit a 3-NDFL declaration to the tax office. If this is not done, a fine of 1,000 rubles will be imposed on the taxpayer.

How to calculate tenure

To determine whether you need to pay tax or not, you need to correctly calculate the period of ownership of the vehicle. The start date of ownership is calculated according to the basis document.

The following documents may serve as the basis for registration of rights to a car:

contract of sale;
deed of gift;
certificate of inheritance.

The date on which the document is dated is the date from which the period of ownership should be calculated.

How many times can the benefit be used?

The state does not limit the number of transactions with motor vehicles, but it regulates the amount of benefits for one reporting period - a year. That is, a deduction of 250 thousand rubles can be used several times in your life. But, if a person sold several cars during one calendar year, then the total tax discount cannot exceed 250,000.

For example: Sevryukov sold a car in January 2018 for 150 thousand. Then in August he sold another vehicle for 400 thousand. The tax will be calculated as follows (100000+400000-250000)*13%=32500.

Planned changes in legislation

Due to the fact that the cost of vehicles is often equal to the price of the property, the State Duma is developing a bill on tax refunds on car purchases.

This benefit will be available if a number of requirements for the vehicle are met. The vehicle must be:

new;
domestic or produced on the territory of the Russian Federation.

It is also planned to set a limit on the maximum amount with which the benefit will be calculated.

Useful: The maximum amount when purchasing a car, within which personal income tax can be returned, will be set at 500 thousand rubles. The amount to be refunded will be 65 thousand (500000*13%)

The preference will be presented to the citizen once, that is, repeated application for a deduction is not provided for in the bill.

This bill is aimed at stimulating consumers to purchase domestic cars and maintaining the Russian automotive industry.

Hiding taxes

If the seller thinks that failure to submit a declaration will save him from having to pay tax, then he is deeply mistaken. All information from the traffic police is transferred to the Federal Tax Service via electronic interaction. Thus, failure to submit 3-NDFL threatens not only a fine, but also penalties for late payment of the tax fee.

Another fraud scheme is the deliberate underestimation of the car sales price in the contract. That is, the documents indicate a cost of less than 250 thousand for the purpose of applying deductions and tax evasion. If information about such a transaction reaches the supervisory authorities, then in addition to an administrative fine, the conspirators will face criminal liability.

Fact. Today in Russia there is no tax deduction when buying a car. At the same time, there are a number of benefits for the sale of vehicles.

Perhaps in the near future the situation will change and the return of personal income tax from a purchased vehicle will become as commonplace as a deduction for the purchase of an apartment.

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Tax refund when buying a car: is there a tax deduction?

It’s not uncommon today to hear: “Have you bought an apartment? Did you return the tax? Yes, it's convenient and profitable. Who would refuse this? At first, it took us a long time to get used to the property tax deduction for housing, it all seemed like fairy tales, but today every realtor, and even ordinary buyers and sellers, know what a personal income tax refund is when buying a home and the intricacies of this issue.

Quite often today you can hear the question, is there a tax deduction for the purchase of a car (car)?

Property tax deduction for the purchase of a car - does it exist or not?

With the purchase of housing, everything is clear: when purchasing real estate worth up to 2 million rubles, the taxpayer can return up to 260 thousand rubles (13% of the cost of the purchased apartment or house) see how to get a property tax deduction.

Selling a car

Here's what the law says about tax deductions when selling a car:

If the car has been owned for more than 3 years (36 months from the date of the contract), then the citizen is exempt from paying tax.
When selling a car that has been owned for less than 3 years, a citizen must submit a declaration in form 3-NDFL (otherwise a fine of 1000 rubles) indicating the cost of selling the car. If a car is sold for more than what was spent on the purchase (documented), the seller must pay personal income tax of 13% on the difference (see how to calculate and pay tax when selling a car less than 3 years old).
The sale of a car worth up to 250,000 rubles is not subject to taxation. That is, even if a citizen made a profit from the sale of a car, but the sale price is less than 250 thousand rubles, such an amount is a tax deduction and is not subject to taxation. But, a 3-personal income tax declaration should be filed in any case if the car has been owned for less than 3 years.

Why is there no tax deduction when buying a car?

Either the legislator underestimates the role of the car in modern life, its influence on the development of the transport system, or considers cars a luxury and not a necessity. Yes, and the transfer of ownership is just as complicated as with housing: the same registration, the same state fees, queues, etc.

By the way, the prices are comparable. Transactions involving the equivalent exchange of a car for an apartment or vice versa are not uncommon. But the fact remains a fact and we will firmly emphasize it once again: the legislation does not provide for a property tax deduction for the purchase of a car.

Is it possible to get a tax refund when buying a car?

According to the law, income tax is refunded for large expenses.

Many citizens have a reasonable question: is it possible to get a tax refund when buying a car? After all, this is clearly quite a waste.

Legislation

You can find the answer in the Tax Code of the Russian Federation:

In paragraph 1 of Art. 220 of the Tax Code of the Russian Federation contains a list of property for which you can receive a deduction.
If we rely on subparagraph 3 of paragraph 1 of Article 220 of the Tax Code and letter of the Ministry of Finance of the Russian Federation dated May 21, 2010 No. 03-04-05/9-277, there is no information about vehicles in this list.
Letter No. 03-07-14/45360 of the Ministry of Finance of the Russian Federation dated July 17, 2017 regulates the procedure for VAT refund to legal entities.

In 2015, deputies of the LDPR party prepared a bill to include transport in the list of property for which income tax can be refunded. But at the same time a certain list of criteria was compiled:

The car must be new.
The car was produced by a domestic plant or it is a Russian-assembled foreign car.
The amount of payments cannot exceed 500 thousand rubles.
Reimbursement is a one-time event.

A list of brands and models purchased by a citizen for the first time at a car dealership was compiled. Thus, the creators of the bill wanted to stimulate consumers to buy domestic cars for the development of the Russian automobile industry.

However, the amendment has not yet been adopted. If it is reviewed and approved in 2019, it means that payments will begin to be made from this period, but for now there are no changes in the law.

For reference! According to the law, you cannot get a deduction for buying a car, you can only get it for selling it.

Tax deduction from buying a car: is it there or not in Russia?

Many taxpayers appreciated the possibility of returning money that was withheld from salaries in the form of 13% when purchasing real estate or making large expenses (charity).

A car is more likely to be considered a luxury. The Tax Code says that only the seller of the car can return 13%. After selling the vehicle, he must submit a declaration to the inspectorate by April 30 and pay personal income tax by July 15.

Individual entrepreneurs or other legal entities can return VAT for the purchase of a car.

For reference! If the tax service refuses to return funds to a legal entity, it must be sent a written notice of the reasons for the refusal.

Is it possible to return income tax for buying a car on credit?

The Tax Code provides for a deduction when taking property on credit. When it comes to a car loan or auction, the law is also adamant.

Attention! According to the law, personal income tax refund for the purchase of a vehicle is not allowed. This applies to cash purchases and leasing.

Perhaps in the near future there will be amendments to the bill that will allow the taxpayer to return his 13% for the purchase of a vehicle, but now the refund is only available to the seller.

Do I need to file a tax return?

The buyer cannot return the 13 percent upon purchasing the vehicle. But, despite this, he needs to carefully monitor all documentation that relates to the car. This is necessary so that in the event of a subsequent sale, the citizen can return the property tax.

The declaration is submitted only when selling a car, and when purchasing such a document is not sent to the inspectorate. But legal entities are required to report to the tax authorities on almost all of their income.

So, an income tax refund when buying a car is impossible, but the seller can issue one. He will need the following documents:

passport;
statement;
declaration 3-NDFL;
vehicle purchase and sale agreement;
paper confirming payment;
documents on a previously completed transaction.

The entire package is submitted to inspection by April 30 of the current year.

Attention! A refund is possible if the seller owned the car for no more than 3 years. The deduction amount should not exceed 250 thousand rubles.

Tax refund when buying a car

So, an individual who acts as a buyer of a vehicle cannot return property tax for it. But the car seller and legal entities, individual entrepreneurs or LLCs can return the tax deduction.

A category of people has been defined for whom there are relaxations in the law in this regard. These include: Chernobyl survivors, pensioners, disabled people, war veterans, etc.

For individuals

The personal income tax refund procedure for an ordinary taxpayer begins with an income declaration to the Federal Tax Service. For citizens living in the Russian Federation for more than 183 days, the taxable amount is 13%, and for those whose period of residence is less - 30%.

The declaration must be submitted to the inspectorate before April 30; you can fill it out yourself by hand, print it, or contact a special organization. It must be handed over to the inspector whose station is located at the taxpayer’s place of residence.

When a citizen has paid the tax, he can begin collecting documents to return his own funds, for this he will need:

a certificate confirming the period of ownership of the vehicle;
purchase and sale agreement for a car;
a copy of the car's passport with a note about the new owner;
papers proving the fact of payment for the transaction;
statement;
Form 3-NDFL.

With this package of documents, the citizen goes to the tax office at his place of registration. Next, you need to wait for notification of consent or refusal to return the money.

If suddenly for some reason the documents for the car were lost and it is impossible to restore them, then it will not be possible to issue a deduction. Moreover, the former owner faces a fine for loss of documents.

For a legal entity

To receive a VAT refund, you need to go through several stages. It is necessary to determine the amount of the refund (to do this, calculate the tax on the sale of goods for a certain period), then add the amount paid for services or products. If the total is more than what you are going to return, then the return will probably be approved.

If the inspector’s decision was positive and the return of funds is approved, then the next day a notification of permission is sent to the treasury, where it is reviewed, and within 5 business days the funds are returned to the applicant. And after another 5 days, the Federal Tax Service notifies the legal entity about this.

To obtain VAT you will need the following documents:

application to the Federal Tax Service;
declaration;
letter requesting a refund;
contract for the sale of transport;
receipts or checks confirming payment for the vehicle.

After a thorough check, the tax office agrees to the refund, but there are cases when a notification is received with a refusal.

Tips and tricks

The main thing for both cases is to correctly collect and prepare the documentation for delivery. A legal entity can buy a car and justify the time spent. But an ordinary taxpayer will have to independently calculate the cost, duration of transport, collect and submit documents to receive 13%.

In this case, there is also an “injured” party - the buyer who will not return his money. But do not despair: perhaps the bill will be adopted.

Can I get a tax refund when buying a car?

Many Russian citizens are interested in the question of whether it is possible to return income tax when purchasing a vehicle. In order to dispel all the myths and assumptions, it is worthwhile to figure out in order whether there is a tax deduction when buying a car, and what benefits are available to persons selling vehicles.

What is a property tax deduction

To understand whether conscientious taxpayers are entitled to tax deductions when purchasing a car, you should familiarize yourself with the term “property tax deduction.” This is a benefit guaranteed by the state to individuals after the purchase or sale of property. The right to a personal income tax refund is provided for by the Tax Code of the Russian Federation (Article 220).

You can use the deduction when purchasing and alienating apartments, private houses, summer cottages, plots of land and when selling other property (garages, vehicles).

Who is eligible for a 13% personal income tax refund?

If you want to get a tax deduction when buying a car, you need to know the requirements imposed by law. An individual must be a resident of the Russian Federation and have official earnings, from which income tax is withheld at the rate of 13%.

Will there be a benefit if you purchase a car?

Tax legislation in the Russian Federation undergoes frequent changes. In this regard, the pressing question arises of how to return tax deductions for the purchase of a car.

Vehicles are classified as expensive goods. To buy a car, people have to take out loans. For respectable payers, a tax refund when buying a car would be an excellent solution for paying off the next installment under a loan agreement.

When it comes to buying real estate: a house or an apartment, everything is clear - a citizen who regularly pays taxes will return 13% of the cost of the purchased property (up to 260,000 rubles).

Even if a vehicle is purchased on credit, a citizen will not be able to claim compensation. The Tax Code of the Russian Federation states that an individual has the right to reduce income for expenses incurred if the following circumstances exist:

Interest was paid under the loan agreement, which was issued to refinance loans intended for the purchase of a residential property or its construction.
Interest on a loan taken to build or purchase housing is repaid.

Nothing is said about the car. The vehicle is property and, logically, a deduction should be applied to it. But it is applicable to individuals in other cases:

To pay interest on a loan to build a house or buy land.
For the purchase of a residential building or apartment or shares in them.
For the construction of a residential property and the purchase of plots of land for development.

In accordance with the norms of the Tax Code of the Russian Federation, the property deduction applies only to real estate, which includes apartments, cottages, country houses, and land for individual construction. An individual does not have the right to reduce the personal income tax tax base by the amount spent on the purchase of a vehicle. There is only one reason: the law does not provide for property deductions for a car.

Truth and myths

The inability to return 13% of personal income tax when purchasing a car can be explained by the fact that in the Russian Federation a car is a luxury, not a means of transportation. Another answer: the role of the vehicle in the modern world is underestimated. But the procedure for transferring ownership, registration, payment of state duty after purchasing a car is carried out according to a similar scheme as in the case of purchasing housing.

Often the prices for an apartment and a car are comparable. In this regard, there are transactions to exchange an apartment for a car and vice versa. Despite this, the law does not establish tax deductions for vehicles.

What is a taxpayer entitled to?

You cannot receive a refund when purchasing a car. But the legislation provides people with another opportunity - they can return the tax on the purchase of a car if it is sold. To do this, you will need documentation that confirms the fact of a purchase-sale transaction indicating the value of the property.

An individual can receive a compensation payment for a purchased car in the following cases:

The vehicle was purchased more than three years ago. In this situation, you will not need many documents. A property deduction is calculated automatically if a person has owned a car for three or more years. The Federal Tax Service is presented with papers indicating the cost of the vehicle.
If a citizen sells a car less than three years later at a price less than it was when purchased.

In the latter case, the right to a refund of income tax is explained as follows: when purchasing transport, a person spent his own funds. And sold it for a lower price. As a result, he received no profit, only expenses. If there is no income, you do not need to pay tax.

Benefits for sellers

If buyers are not entitled to a tax break when buying a car, sellers are provided with it, only in part.

Documents for receiving a deduction

Tax refunds are made upon presentation of a document identifying the person. A copy of the passport is provided to the tax authority.

Tax reporting – declaration form 3-NDFL. You can fill it out yourself or using special programs and print it out.
Certificate of income from place of work, form 2-NDFL.

You must submit an application for a deduction. The document is drawn up in any form. Be sure to indicate:

Reason for requesting compensation.
Information about the car purchase and sale transaction.
Information about the purchaser of the vehicle.

The application indicates your income and the amount of money spent on the purchase of the car. The application must be accompanied by documents directly related to the transaction. These are:

Purchase and sale agreement (original or certified copy).
Papers confirming income and expenses (receipts, checks).
Payment certificate.
Certificate of ownership of the car.
Technical equipment passport.

It is advisable to make certified copies of the last two documents from the list.

The vehicle alienation agreement can be replaced with a certificate from the traffic police, which contains data about the car:

Name.
Make and model.
Date of issue.
License number before concluding a deal.

The certificate also contains information about the owner of the vehicle.

What to do if you haven’t kept the documents confirming the purchase of the vehicle?

There is no need to sound the alarm if you were unable to save the documentation confirming the purchase of the vehicle. The citizen still retains the right to return. But some complications may arise. Subtleties of the question:

A person is still exempt from taxes if he sells the car after using it for more than 3 years.
Sales of a car at a price of less than 250,000 rubles are not subject to personal income tax.

For example: a person sells a vehicle for 500,000 rubles. There are no documents confirming its purchase. A citizen is required to pay income tax. In this case, 13% will be deducted not from the full amount, but from the 250,000 rubles that will remain from the return. The seller is obliged to pay 32,000 rubles to the treasury. If he had documentation confirming the costs of purchasing the vehicle, the tax would not be withheld.

The procedure for returning personal income tax upon alienation of a car

To pay compensation, a citizen fills out a declaration, collects the list of documents indicated above, and draws up an application for deduction. Sends a package of documents to the tax authority located at the place of residence. This must be done before April 30 of the year following the one in which the profit was made.

If the vehicle is owned by several owners, each of them submits a declaration. The tax refund will be paid in proportion to the share or by agreement between the co-owners.

It is advisable to submit the application for deduction and tax return to the Federal Tax Service at the same time.

Within 3 months, the inspectorate conducts a desk audit, based on the results of which a decision is made on payment of compensation or refusal. If there are no complaints about the attached documentation, the money will be credited to your bank account within a month.

The state considers personal transport more of a luxury than a necessity. In this regard, a refund of part of the income tax for the purchase of a vehicle is not provided. The law regulates only tax deductions when selling a car under certain conditions. If an individual alienates a car that has been owned for more than three years, he is given a benefit instead of a property deduction. There is no need to submit a declaration to the Federal Tax Service. Income tax will not be levied on the full amount received from the sale of the vehicle, but on part of it.