California—Sales and Use Tax: Instruction for Used Vehicle Dealers Issued

For sales and use tax purposes, the California Department of Taxes and Fees Administration (CDTFA) has issued a notice requesting used car dealers to provide detailed information on used car sales when filing their sales and use tax returns. They must provide the Vehicle Identification Number (VIN) for all vehicles sold when submitting their CDTFA531MV, Used Car Dealership Sales Report.

Specific dealers are also required to pay the vehicle sales tax directly to the Department of Motor Vehicles (DMV). Sales reported to the CDTFA must be reported on the tax return in the month the sale occurs, not when vehicle payment is received or when registration and tax are paid to the DMV. The DMV collects the tax only on the vehicle’s sale price, and taxpayers must report the sale price on their CDTFA531MV. Other additional taxable charges such as B. Document fees, smog certification fees, and required guarantees must be declared on your VAT returns.


About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.

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