Are Parallel Imported Vehicles Subject to Taxes?
3 Answers
Parallel imported vehicles are subject to taxes. Below is an introduction to parallel imported vehicles: 1. Significant Price Advantage: Parallel imported vehicles bypass sales channels such as general distributors, regional distributors, and 4S stores, eliminating many intermediate links. Additionally, parallel import dealers have more freedom in pricing, as they are not restricted by manufacturers, resulting in substantial price discounts. Typically, parallel imported vehicles are 10% to 20% cheaper than their China-spec counterparts. 2. Model and Delivery Time Advantage: Sometimes, when new vehicles are launched overseas, they may not be immediately available in China due to manufacturers' strategic planning or domestic certification issues. However, parallel imported vehicles have a natural advantage in this regard—they can be freely purchased overseas and then shipped to China for sale, significantly reducing the waiting time for new models. 3. More Diverse Model Configurations: Another advantage of parallel imported vehicles is the ability to purchase overseas models not available in China. Generally, to align with the Chinese market positioning strategy, manufacturers make certain adjustments or modifications when importing overseas models to China.
As a first-time buyer of parallel-imported vehicles, I've personally experienced this: taxes on parallel imports are unavoidable. When I bought a US-spec car before, it was cheaper initially, but the taxes were substantial. Import duties are calculated as a percentage of the car's price, and VAT is unavoidable. There might also be consumption tax on the vehicle. Combined, the tax rate can reach about 30% of the car's price, so it's essential to check beforehand. After paying taxes, the total price might still be lower than officially imported models, but don't overlook other risks like warranty issues or complicated procedures. I recommend new buyers consult thoroughly before purchasing, calculate the total cost, and not just focus on the base price to avoid regrets later. Being well-prepared can save a lot of hassle and allow you to enjoy more vehicle options.
I've been in the parallel import car business for several years, and paying taxes is non-negotiable in this industry. During import, you have to deal with basic taxes like tariffs and VAT, with rates depending on the car type and country of origin. For example, American cars have lower tariffs but a uniform 17% VAT. There's also consumption tax, with gasoline cars subject to an additional 10% or so. Every import requires detailed tax calculations, as the post-tax cost directly impacts profits. In practice, customs strictly checks declared values—underreporting or tax evasion can lead to fines or even business suspension. That's why I always remind peers that proper declaration and tax payment are the baseline—only then can the business sustain and customers feel secure. When taxes are fully paid, sourcing is broad and prices flexible, keeping the market vibrant.
