Second Hand Vehicle Dealers Licence

Second-hand vehicle dealers must have a licence if they buy, sell or offer for sale 4 or more vehicles in 12 months.

You can apply online with Consumer and Business Services (CBS), Commercial Licensing Section for a Second Hand Vehicle Dealers Licence.

More information on second-hand vehicle dealer licence

What stamp duty exemptions are available for second hand vehicle dealers?

Dealers may claim an exemption from the payment of stamp duty on the registration and transfer of registration of new and used vehicles registered for the purpose of resale and new vehicles used as demonstrator vehicles.

All such vehicles must be readily available for sale and, where applicable, display the sales schedules required pursuant to the Second-hand Vehicle Dealers Act 1995.

Licensed Second Hand Motor Vehicle Dealers are not entitled to claim an exemption from stamp duty when purchasing new motor vehicles unless they are in the business of selling new motor vehicles.

The maximum registration period for which a dealer exemption can be claimed on the registration of a vehicle is 12 months.

Where vehicles are retained for a period longer than 12 months but have not been continually registered during that period, the total period for which the vehicle has been registered will be taken as the period for exemption purposes.

Compliance audits and investigations for second hand vehicle dealers

Compliance audits and investigations are conducted to determine:

  • low values being declared on second-hand imported motor vehicles;
  • new and second-hand motor vehicles utilising trade plates inappropriately and thereby claiming an exemption to which they are not entitled; and
  • motor vehicles which have been sold but are still registered in the dealer’s name.

Voluntary disclosure and payment for second hand vehicle dealers

Significant reductions in penalty tax can be obtained by notifying RevenueSA voluntarily of the following events and by making prompt payment where a vehicle:

  • registered to a dealer when the dealer has incorrectly claimed the exemption;
  • registered to a dealer when the dealer exemption is no longer applicable; and
  • that is sold or delivered by a dealer to a customer, where the contract of sale or delivery states that the dealer is to arrange registration or transfer of registration, and the vehicle has not been registered in the customer’s name within the prescribed time limit of 14 days.

See Revenue Ruling TAA01 for further information on the application of interest and penalty.

If you wish to make a voluntary disclosure to RevenueSA, you can find out more about voluntary disclosures on our Voluntary Disclosures page.

Voluntary Disclosure Form: Vehicle Exemptions – Licensed Motor Vehicle Dealer (PDF 257 KB) is also available.

Further information is available in Information Circular 87.

Written correspondence and payments by cheque or money order made payable to the Commissioner of State Taxation and sent to:

Compliance Services Branch
GPO Box 2149

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