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Selling Motor Vehicles/Cars in Singapore

Selling Motor Vehicles/Cars in Singapore

Selling motor vehicles and cars in Singapore is a complex activity which implies the following activities:

  • importing the motor vehicles in Singapore,
  • selling new vehicles,
  • selling second-hand vehicles,
  • selling motor vehicles and car bodies and parts of de-registered vehicles.

All cars and vehicles in Singapore must be registered with the Land Transport Authority (LTA). Singapore companies selling motor vehicles are also required to register with the Customs authorities.

What are the documents required when selling cars in Singapore?

Due to all safety requirements imposed by the LTA for Singapore companies selling motor vehicles in 2024, there are certain documents to be obtained when importing and re-selling cars. The following documents are necessary when importing motor vehicles in Singapore:

  • an ATA Carnet, which is a temporary import-export documents used for motor vehicles to be re-exported;
  • a Temporary Certificate of Entitlement;
  • a Certificate of Entitlement.

Cars can be imported based on the Discounted Sales Price Scheme which allows companies in Singapore to sell second-hand motor vehicles with a goods and services tax applied on 50% of the selling price of the car. Cars can also be imported according to the Gross Margin Scheme through which the GST applies on the difference between the vehicle’s selling and purchase price.

Selling vehicles in Singapore

Not all companies are required to register for taxation purposes with the Singapore tax authorities. However, companies selling motor vehicles in Singapore are required to pay the goods and services tax on the cost, insurance and freight (CIF) value and the customs duties.

Singapore companies selling new vehicles are required to display the price of the vehicle with the GST included. If selling motor vehicles to another vehicles trader, the company is not required to display the price with the GST. The vehicles are also subject to a mechanical inspection with the Land Transport Authority before being registered.

Singapore citizens purchasing cars under the Preferential Additional Registration Fee may benefit from returns on their used vehicle’s open market value upon de-registration.

Licenses for car dealers in Singapore

Setting up a car dealership in Singapore implies applying for a specific license with the Land Transport Authority (LTA) or Singapore Police Force. It is important to note that the authority to address depends on the types of vehicles to be sold. Specifically:

  • when selling new cards, the LTA license is required;
  • when selling second-hand vehicles, the license must be obtained with the Police Department.

One of the most important aspect to consider is that starting with 2025, Diesel-cars will no longer be accepted for registration in Singapore. Also, from 2030, all cars brought and sold in Singapore must be electric or hybrid.

For information regarding tax incentives for selling or purchasing motor vehicles in 2024 please contact our specialists in opening companies in Singapore.