1. The 3-year exemption
VMI says income from selling registrable movable property is exempt when it has been owned for at least 3 years. Use the dates in your acquisition and sale documents, and keep the earlier contract, invoice or other proof.
A memory of the price or an unexplained bank transfer may not be enough to substantiate the acquisition date and amount.
Official source: VMI: non-taxable sale of registrable movable property (LT)
2. Taxable profit is not necessarily the full price
When the exemption does not apply, VMI calculates taxable income by deducting the documented acquisition price and qualifying mandatory sale or registration payments from sale proceeds.
VMI also explains that repair and maintenance costs are not added to the vehicle’s acquisition price for this calculation. Keep repair records for condition history, but do not assume they reduce GPM.
Official source: VMI: taxation of vehicle-sale income (LT)
3. Use the real price and check the current rate
The rate generally starts at 15%, but a higher rate may apply depending on total taxable annual income and the rules in force for that year. Use VMI EDS guidance when completing the annual return.
Always state the real price, payment method and date in the contract. Gifted, inherited, foreign-acquired or business-use vehicles may require a case-specific acquisition-cost calculation.