philly boi wrote:how do u go about transfering a company vehicle to an individual?
(i searched the thread but there doesn't seem to have a clear answer to it)
I have done this a million times. (more like 12)
If the company is VAT registered and paying VAT when they sell the vehicle, neither party has to pay a transfer fee meaning that regardless of age, the cost to transfer a vehicle will be $10. The process for this is as follows.
1. An evaluation will have to be done on the vehicle.
2. A TAX invoice will have to be produced. The invoice must have the VAT registration number, a date (must be a working day, no Saturdays, Sundays or public holidays), the price, the VAT, an invoice number, description of the vehicle, the engine number, chassis number, name of the buyer and their address.
3. An original certified copy 3 months old or less. If it is more than 3 months old, valid insurance in the name of the owner on the certified copy must be presented.
4. Photocopies of all 3 documents above.
You drop in the above to any VAT office and they will stamp the invoice and produce a letter to be presented during the transfer. They will keep all photocopies and return all original documents plus their letter exempting you from paying the Transfer Tax.
Here is the catch with the above. If the valuation price is higher than the selling price then the VAT on the evaluated price must be the VAT on the invoice, meaning the company selling the vehicle pays in excess of 15% VAT. If the selling price is higher than the evaluated price, you just pay the 15% VAT as normal.
5. You then fill out a transfer form provided by the MOT/LO. The transfer form must have the company stamp on it.
6. The person performing the transfer must have an authorisation letter addressed to the Transport Commissioner stating that person X, an employee of company Y with DP# Z is authorised to perform the transfer on behalf of the company. This letter must contain the name of the person buying the vehicle, their address, a date, a description of the vehicle (e.g. Toyota Corolla), chassis number and engine number. You must have an authorisation letter with the company letterhead or stamp even if you are the owner of the company.
Alternatively, if this is too much headache to go through or the vehicle is 10 years or older (it will be cheaper and faster than going through the above to save $150). You fill out the transfer form with the company stamp on it, produce the authorisation letter and have your transfer tax money ready and $10 transaction fee ready.
Lastly, regardless of what route you go through, the buyer must have insurance whether one day cover note or otherwise.
If the company is not VAT registered, they will not be exempt from the transfer tax and possibly as the company will NOT have a letterhead, a receipt for the sale and an authorisation letter with the company stamp will be sufficient.
I have some documents in my car to do a couple transfers so if i forgot anything I will update my post tomorrow.
.What should be the relevant course of action?
