Did you book a car before the end of the sales tax exemption period on June 30, 2022? Well, this is a reminder that you only have until March 31, 2023 to get your vehicle registered in order to enjoy the tax savings.
Back in June 2020, the previous government announced a 100% sales tax exemption on locally-assembled (CKD) models and 50% on fully-imported (CBU) models, with the initial exemption period being from June 15 until December 31 the same year.
The deadline was extended three times since then, with the first being until June 30, 2021, the second until December 31, 2021, and the third until June 30, 2022. However, due to global supply chain and production issues, many customers were unable to receive their cars in time.
As such, an allowance was given for the sales tax exemption to be applied for any vehicle booked before July 1 and with a sales invoice and registration completed before March 31, 2023. This is subject to a key requirement: eligible vehicles must have a manufacturer invoice/K1 form dated between June 15, 2020 to March 31, 2023.
Buyers must also ensure that all information on the booking form is accurate and they are not allowed the change the booking ownership (customer name) to another person. Put simply, whatever that is stated in the booking form is final and cannot be changed, including the registered model and variant. This also covers loans, and if you can get an approval, you can’t switch names and won’t gain the tax savings.
With just over a week to go until the registration deadline, customers will be eager to get their vehicles and sales advisors will be rushing to make it happen. The end of the sales tax exemption last June has naturally seen the prices of vehicles go up, with the exception being commercial vehicles that are not eligible for the sales tax cut.
Some car companies like Perodua have said that they will absorb the sales tax even if the car is delivered after March 31, 2023, provided they made the booking before June 30, 2022, which is encouraging new for the company’s customers. Have you benefitted from the sales tax exemption or are you still waiting and hoping to get your car before the deadline to enjoy the tax savings?
The post Booked a car before June 30, 2022? You have until March 31, 2023 to register it for SST exemption appeared first on Paul Tan's Automotive News.
* This article was originally published here
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