![]() Where an LMCT has already obtained an exemption under section 231(1) and the motor vehicle is no longer used solely as trading stock, this is considered a change of use for the purposes of section 238 of the Act and the motor vehicle will be subject to MVD. If the motor vehicle is not used solely as trading stock, the exemption provided under section 231(1) will not apply. This requires that the motor vehicle is used in the carrying on of the business of the LMCT and solely for the purpose of the sale of that motor vehicle. The SRO considers that the word solely requires the motor vehicle to be used exclusively as trading stock and for no other purposes. Ruling Section 231(1) - Trading stock exemption (Wholesale)Īn LMCT who carries on a business of wholesale dealing in motor vehicles is exempt from paying MVD on the registration or transfer of a motor vehicle where the motor vehicle will be used solely as trading stock. Revenue Ruling DA-034v2 clarifies the position of the State Revenue Office (SRO) on the application of these exemptions and should be read in conjunction with DA-035v2, which provides guidance in determining whether a change in the predominant use of a motor vehicle has occurred, thereby attracting duty under section 238 of the Act. The exemption for service demonstrator vehicles applies from 1 July 2019. Section 231(2)(a) of the Act provides an exemption on the registration or transfer of a motor vehicle by an LMCT who carries on a business of retail dealings in motor vehicles if the motor vehicles are trading stock, used as demonstrator vehicles or used as service demonstrator vehicles. Section 231(1) of the Act provides an exemption on the registration or transfer of a motor vehicle by a Licensed Motor Car Trader (LMCT) who carries on a business of wholesale dealings in motor vehicles if the motor vehicles are trading stock. MVD is calculated on the dutiable value of the motor vehicle. PreambleĬhapter 9 of the Duties Act 2000 (the Act) charges MVD on an application for the registration or transfer of a motor vehicle unless an exemption applies. This exemption was announced in the Victorian Government’s 2019-20 Budget. This ruling replaces DA-034 to take into account the exemption from motor vehicle duty (MVD) on the registration or transfer of a service demonstrator vehicle on or after 1 July 2019. The length of ownership associated with exemptions from motor vehicle duty available for licensed motor car traders has been extended from 12 to 18 months for all vehicles registered as a demonstrator or service demonstrator vehicle between 1 March 2019 (1 July 2019 for service demonstrator vehicles) and 30 September 2020. This ruling should be read in conjunction with the motor vehicle duty relief measure introduced by the Commissioner of State Revenue on to assist licensed motor car traders who have been impacted by the coronavirus pandemic.
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