The Ministry of Finance opposed the proposal of car dealers to abolish double taxation, which occurs when a used car is resold between legal entities. This is stated in a letter from the department signed by Deputy Minister Irina Okladnikova to the Russian Automobile Dealers Association (RoAD) dated April 21. Vedomosti has the document.
As a justification for the refusal, the Ministry of Finance cites the same arguments as almost two years ago, when the RoAD already came up with such an initiative. Then the department explained that the abolition of double VAT would lead to losses in federal budget revenues and would de facto be a subsidy for VAT payers who resell cars. Even earlier, in 2018, the relevant amendments to the Tax Code (TC) on the abolition of double VAT were proposed by the Ministry of Industry and Trade.