Can You Get a Road Tax Refund After Selling Your Car?

Have you sold your car but still have several months left on its road tax? You may be wondering whether you can get a refund for the unused period.

Yes, you can apply for a road tax refund after selling your car if you meet JPJ’s requirements. However, the refund is not automatic when ownership changes. You need to check the cancellation procedure for your Motor Vehicle Licence (LKM) and submit an application to the Road Transport Department (JPJ).

Before applying, here is what you need to know about eligibility, the documents involved and the refund process.

Can You Get a Road Tax Refund After Selling Your Car?

Yes, subject to JPJ’s eligibility requirements and procedures. If your road tax is still valid, you can check whether any remaining road tax fee qualifies for a refund.

Here is a quick overview:

Situation	What you need to know
Your road tax is still valid after selling the car	You can check whether you qualify to cancel the LKM and apply for a refund.
Your road tax is close to expiry	The eligible remaining amount may be smaller. Check the refundable amount with JPJ.
Your road tax has expired	There is no remaining valid period to refund.
Ownership has been transferred	Ownership transfer and road tax cancellation are separate processes. Check whether a separate cancellation application is required.
You also want to cancel your car insurance	Contact your insurer separately, as any insurance refund depends on the policy terms.

You can also read BJAK’s guide on whether you need to cancel road tax after selling your car.

How Is a Road Tax Refund Calculated?

A road tax refund is not necessarily equal to the amount you originally paid. The approved amount depends on the eligible remaining fee and JPJ’s calculation.

For example, if you renewed your road tax for one year but sold your car a few months later, you should not assume that you will receive the full amount for the unused period.

JPJ’s procedure includes a minimum refund amount of RM5. Check the official JPJ procedure for LKM cancellation and refunds for the current requirements.

How to Apply for a Road Tax Refund After Selling Your Car

If you want to claim a refund for your remaining road tax fee, follow these steps.

1. Make Sure the Ownership Transfer Is Complete

Confirm that the vehicle ownership transfer has been completed and keep the relevant sale or transfer documents.

These documents may help when you check the road tax cancellation process with JPJ.

2. Check the Required Documents

The documents required may vary depending on how you apply and your vehicle’s circumstances. You may need:

• The registered owner’s identification or other relevant identification documents.
• Vehicle registration details.
• JPJ K6 form for the LKM cancellation and fee refund application.
• Bank account details for the refund, if required.
• Supporting documents or receipts related to the transaction, where applicable.

Check the latest requirements in the official JPJ guidelines before applying. Requirements for submitting the LKM may also differ depending on the transaction channel and the type of document issued.

3. Submit Your Application to JPJ

Follow the application channel specified by JPJ. If you are applying at a counter, check which office provides the service and which documents you need to bring.

For certain online ownership-transfer transactions, the procedure for submitting supporting documents may differ. Check JPJ’s instructions for your specific transaction before sending any documents.

4. Wait for the Outcome and Refund

After submitting your application, allow JPJ to review it and make a decision. If approved, the refund amount will be calculated according to the applicable eligibility rules and procedure.

Keep your receipt, reference number and copies of the documents submitted so you can follow up if necessary.

What About a Car Insurance Refund?

You may also want to cancel your car insurance after selling the vehicle. However, a road tax refund and an insurance refund are two separate processes.

Cancelling your road tax does not automatically cancel your insurance policy. Contact your insurer or takaful operator to check whether the policy can be cancelled and whether you qualify for a refund.

The approval and amount of any insurance refund depend on the policy terms and the provider’s decision. Read BJAK’s guide on cancelling an insurance policy after it becomes active.

Conclusion

You may be able to get a road tax refund after selling your car if there is an eligible remaining fee. However, the refund is not automatic and must be requested through JPJ’s procedure.

Make sure the ownership transfer is complete, check the required documents and follow JPJ’s instructions for cancellation and refunds. If you also want to cancel your insurance, submit a separate request to your insurance provider.

For more information about road tax and car insurance, visit the BJAK Roadtax Learning Hub or the BJAK Car Insurance Learning Hub.