My company is looking at buying some second-hand electric vehicles and we are wanting to ensure they are exempt from FBT.
EVs are exempt from FBT if below the luxury car tax limit i.e. no luxury car tax is paid. This is straight forward for new cars but less clear for used cars.
The ATO guidance states "if you purchase an electric car second hand, you need to determine if it was subject to LCT at any time in the past."
However, there is no guidance on how to determine if LCT has been paid on a used car in the past. What proof is required? How can this be determined if the seller (dealer or private) is unsure whether LCT was paid or not, and has no receipts from the original purchase?
Particularly vehicles with a RRP close to the car limit are a grey area as its not known what the final transaction value was and whether discounts brought the vehicle below the LCT limit applicable at the time of the sale.
Thanks in advance!
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