We often get asked questions pertaining to buying and selling cars here at AutoTrader, and one that has cropped up more frequently of late has been the question of taxation, specifically, if one must pay tax when selling their vehicle. If you are looking to buy a new car, but need to sell your current car first, AutoTrader can get you an Instant Offer!
Related: How do I sell my car to a dealer?
Do you need to pay taxes when selling a vehicle?
The short answer is no, provided you are a once-off private seller. If the vehicle that you own is for personal use and is considered a personal asset, there is no need to declare the sale to SARS as there is no tax payable. If you, on the other hand, frequently buy and sell vehicles with the aim of turning a profit, you may be liable for capital gains taxation as per regular income.
