A car is a means of transportation, but sometimes it can also be a luxury item. It all depends on its value in the market. The tax legislation of the state is structured in such a way that luxury cars can be taxed at a higher rate.
When buying a car, you need to think in advance how much it will cost you. And it’s not just about price and service. In addition, there are some expenses that need to be paid annually. This is insurance of at least one OSAGO policy, as well as state tax obligations. All vehicle owners must pay road tax. It is calculated according to the general rules, but there is also a luxury tax, which takes into account the average cost and age of the car.
Important! The luxury tax should be paid not only by car owners – individuals, but also by legal entities that have such equipment in their fleet.
Install according to the general rules
Car owners are required to pay taxes for the car (clause 1 clause 1 article 359 clause 2 article 362 of the Tax Code of the Russian Federation). It is calculated once a year. The amount depends on the power of the car. Therefore, it is necessary to multiply the amount of power by the tax rate in conventional units. The result is the amount of tax per year per car. The Tax Code specifies base rates for each region. These indicators cannot exceed the federal rate by more than ten times, both in positive and negative terms.
To find out what transport tax rate is valid in your region, you need to look for it not in the Tax Code, but at your place of residence. You can find the exact information on the reference and information portal of the Federal Tax Service.
Some regions require prepaid transportation fees for organizations. For the first three quarters, the advance is calculated in the same way as the tax for the year. The solo must be divided by four, meaning that instead of the total amount of tax at the end of the reporting year, which will need to be paid in a single amount, you can pay this payment in advance during the year, dividing the amount in four parts. Organizations have the ability to pay taxes. Thus, three payments are made per quarter, and at the end of the year, an additional payment for the fourth quarter.
What is a luxury tax
This definition includes cars that cost more than three million conventional units. These vehicles require a higher toll rate.
List of the Ministry of Industry and Trade for 2021 A
list of expensive cars can be found in the list of the Ministry of Industry and Trade. You can also specify the model and the number of years since the car was made. Also in the list you can check the type of engine and its volume. The list of expensive cars is published annually until March 1 (clause 2 of article 362 of the Tax Code of the Russian Federation). In 2021, this list was posted on the website on February 26. Without waiting for next year, the Ministry of Industry and Trade updated the list this fall. Three Mercedes-Benz models have been added to all the cars on the list in the “passenger cars" category from ten to fifteen million conditional units. If you have such a car, be sure to check the list and find out if you need to pay a luxury tax.
The list for 2022 has yet to be revealed, so we’ll have to wait until the end of next winter to see the list of cars that will need to pay the luxury car tax.
Find out how old your car is The age of your
car affects the tax rate. For example, in the list of expensive cars, the number of years that must elapse from the year of manufacture of the car is indicated. It can be 1-2 years inclusive. For example, if your car was manufactured last year and according to the list of luxury cars, a condition of 1 to 2 years must be met, you will have to pay a surcharge.
If the car was produced before the specified date and the number of years from the date of issue exceeds that specified in the list, the transport tax will be paid on a general basis (Letter of the Federal Tax Service of February 28, 2020 N BS. -4- 21/3389 @ together with the Letter of the Ministry of Industry and Trade of February 18 2020 N PG-20-1225). Therefore, the age of the car is calculated in the years of its release. The number of years is taken into account from January 1 of the current year and is calculated in calendar years following the year of issue (clause 3 of article 361 of the Tax Code of the Russian Federation). Simply put, a car produced in 2019 will be two years old in 2021.
If you bought a car for more than three million conditional units, but this brand is not on the list of the Ministry of Industry and Trade, then, accordingly, you are not required to pay more for the car (Letter of the Ministry of Finance dated 13.05.2019 No. 03-05-06-04 / 33968). On the other hand, you may find yourself in a situation where you bought a car for less than three million, but it is on the list of luxury cars. Such properties are subject to a higher tax rate.
Luxury tax 2021
When the tax office calculates freight charges, in some cases a multiplication factor is applied. This directly depends on the age of the car and its average cost (clause 2, article 362 of the Tax Code of the Russian Federation).
Thus, it turns out that if a car costs from three to five million conventional units inclusive, and its age does not exceed three years (for this year it is 2019 and later), then the tax coefficient for transport tax will be 1.1. For cars from five to ten million conventional units inclusive, whose age does not exceed five years (these are cars from 2017 to 2021), for them the luxury tax coefficient is 2. If a car is purchased at a price of ten to fifteen million conventional units, its age no more than ten years from 2012 to 2021), so the luxury tax coefficient will be 3. And the same coefficient will be applied to all car owners who bought them in the amount of fifteen million conventional units and more and the car is not more than twenty years old. It means,
Luxury Tax Ratios in 2022
These taxes are similar in size, amount and ratio to 2021. Wealth tax rates also remain unchanged:
Three-year-old cars (2020-2020) worth from three to five million conventional units will be calculated with a luxury factor of 1.1.
Vehicles not older than five years (2018-2022) with a value between five and ten million conventional units will be taxed at a factor of 2.
Vehicles not older than ten years (2013-2022) with a value between ten and fifteen million conventional units will be taxed with a coefficient of 3.
At the same time, with the same coefficient, cars not older than twenty years (from 2003 to 2022 and beyond) will be taxed with a value of fifteen million conventional units or more.
An example of calculating the tax on an expensive car
Let’s say your car costs 3.5 million conventional units, was released in 2020, and is also on the list of expensive cars subject to higher taxes. The engine power of your car is 145 hp. The car is registered in Moscow. The tax rate will be thirty-five conventional units per 1 CV. Luxury coefficient – 1.1. It turns out that for 2021 you must pay the following amount to the tax authorities:
145 CV x 35 conventional units x 1.1 = 5582.5 rubles.
If the description of the car does not match the list of expensive cars
Let’s say your car model is listed by the Ministry of Industry and Trade, but the specification is different in some data. If you find differences in the description of the car in the list of expensive cars and in the technical characteristics of your car, it turns out that you are not required to pay taxes at an increased rate (Letter of the Ministry of Industry and Trade recently). February 11, 2020 No. 8814/20).
Important! The increased tax rate is charged only on those cars that are listed in the list of expensive and luxury cars. If in doubt, consult the Ministry of Finance and the Ministry of Industry and Trade for specific brand and model information.
If you don’t find the make and model of your car in the list of expensive cars, pay for transportation at the regular rate.
Important! If your car wasn’t on the luxury car list last year, it might be there this year because the list is updated every year. In order not to be in debt to the state on the issue of paying a transport fee, carefully check the list for the presence of your car in it.
Payment of taxes by organizations
If an organization owns its own fleet, it is obliged to pay transport tax for each vehicle registered to it (Article 358 of the Tax Code of the Russian Federation). To reduce the financial burden, organizations can make upfront payments on a quarterly basis. Each region has its own regional laws governing this issue (clause 2, article 363 of the Tax Code of the Russian Federation). If prepayment of tax is required by regional law, the conditions are the same for all regions. Prepayment for the first quarter must be made by April 30, for the second quarter by July 31, and for the third quarter by October 31.
If the last day of the due date falls on a weekend, the tax must be paid on the business day following the weekend. Payment for the fourth quarter is made before March 1 of the next year (clause 1, article 363 of the Tax Code of the Russian Federation). The company does not file a tax return. Until September 1, the tax service sends a calculation for the past year (Article 363 of the Tax Code of the Russian Federation). If everything matches and nothing needs to be corrected, the notification is simply paid. In case of inaccuracies, you must send explanations with the calculation to the tax office within 10 working days from the receipt of the calculation.
Payment of the transport fee by individuals
The tax must be paid before December 1st. After all, it turns out almost three months to fulfill their financial obligations (clause 1 of article 363 of the Tax Code of the Russian Federation).
All the nuances are spelled out in the tax legislation. Every law-abiding citizen must fulfill his obligations. If a citizen does not pay taxes before December 1, then, unfortunately, a fine will be collected from him every day. After three months, if the payment is still not received, the Federal Tax Service can sue the car owner and forcibly recover the entire debt. The money may be withheld from the debtor’s credit card.
History knows cases when the car changed its owner, but the receipt from the tax office still came to the same address every year. This is due to the fact that the new owner did not pay attention to the re-registration of the vehicle. When the owner changes, the data changes in the traffic police database. As a result, tax calculations end at the old address. To avoid this embarrassing situation, the car buyer must re-register the car within ten days.