Lawyer names risk factors when buying a car abroad

Buying a car in another country, especially in the territory of the Customs Union, seems simple and profitable: a large selection, often lower prices. However, not everyone is aware of the risks associated with paying in cash. Vladimir Andrianov, legal adviser of the customs broker "FCS-Service" told "Izvestia" on February 15 about what fines may threaten and what consequences to prepare for.

According to Russian legislation (173-FZ "On currency regulation and currency control"), Russian residents may face restrictions when settling accounts with non-residents. If a Russian citizen transfers cash to a citizen of another country for a purchased car, the tax service may regard this as a violation of the procedure for currency transactions.

"The main risk factor is the form of settlement. The law allows settlements between a resident and a non-resident, but often only in a non-cash format - through bank transfers. Payment of a large sum in cash often goes beyond the law and attracts the attention of controlling authorities. The degree of violation depends on the amount of the transaction and the status of the parties (personal purchase or commercial), as well as on the currency of payment (Russian rubles or foreign currency)," the expert explained.

At the same time, the legislation does not explicitly name a specific threshold when "cash payments" are automatically considered illegal. But in practice, any amount over Br100 thousand in international transactions attracts attention.

The main sanction for violation of the order of currency transactions when buying a car for cash is provided by Article 15.25 of the Administrative Offenses Code of the Russian Federation. The fine can range from 75 to 100% of the transaction amount.

"For the Russian tax service, any large cash transfer of money to a non-resident raises questions: where the funds come from, whether taxes have been paid, whether the documents have been drawn up correctly. If it turns out that the settlement does not meet the requirements of currency legislation, the fine can be quite significant," Andrianov said.

It is not uncommon for buyers to leave Russia with impressive amounts of cash to pay for a car on the spot. But even here there are strict rules of customs and currency control. If the cash exceeds the equivalent of $10 thousand, it is necessary to declare the money in writing when crossing the border. In the absence of documentary evidence of the legality of the money, the export may be considered illegal. This may result in fines and confiscation.

Making payment via bank transfers is the safest option.

"As a rule, only large transactions with a large number of cars fall under the attention of the FTS. If you have purchased one car for personal purposes, the risk of a tax audit is minimal. Nevertheless, any large purchase abroad should be planned in advance. Properly executed documents and transparent payment schemes will help you avoid serious problems. If you have no experience in such operations, it is better to get advice from a customs broker or lawyer than to deal with the consequences later," the expert summarized.

Last year, December 13, it was reported that from January to November 2024, 848 thousand new passenger cars of Chinese brands were sold in Russia. This is 80% more than in January-November 2023. The share of passenger cars of brands from China in the Russian market increased from 50.1% to 58.6% over the year. The most popular brands among Russians are Haval, Chery, Geely and Changan, the share of these four brands together account for 66% of the total sales volume of "Chinese".