Are There Purchase Taxes for New Energy Vehicles?

[KatherineMarie]

New energy vehicles are exempt from vehicle purchase tax. Below is a detailed introduction to vehicle taxes: 1. Consumption Tax: For passenger cars, three tax brackets are set based on different engine displacements, levied on manufacturers. 2. Value-Added Tax (VAT): VAT is a turnover tax levied on the added value generated during the circulation of goods (including taxable services). A 17% tax rate applies to the sale of goods, provision of processing, repair, and replacement services, import of goods, and provision of tangible movable property leasing services, which includes automobile sales. 3. Purchase Tax: A 10% vehicle purchase tax is levied on passenger cars with an engine displacement of 1.6 liters or below. New vehicle purchase tax = new vehicle price (including tax) ÷ 1.17 (VAT rate of 17%) x purchase tax rate. 4. Vehicle and Vessel Tax: The vehicle and vessel usage tax is a usage tax levied on vehicles traveling on public roads and vessels navigating domestic rivers, lakes, or territorial ports, calculated based on their type (such as motor vehicles, non-motor vehicles, passenger cars, cargo trucks, etc.), tonnage, and specified tax rates.

[June]

I saw someone asking about the purchase tax policy for new energy vehicles, and I’ve specifically researched it. Buying an electric car now is simply a great deal! The government has directly exempted the vehicle purchase tax, and this policy is valid until the end of 2024. For example, if you buy a car worth 200,000 yuan, the original purchase tax would have been around 17,700 yuan, but now you save that entirely. However, starting in 2025, it will change to a half-rate levy, so buying a car above 300,000 yuan will cost a bit more. The key is to check the "Exemption Catalog"—some imported cars may not qualify for this policy. The specific tax exemption amount is marked on the car purchase invoice, so remember to ask the 4S dealership to help you with the tax exemption application.

[EmersynMarie]

Last month when I helped my nephew buy a new energy vehicle, I checked the policies. Currently, purchasing pure electric or plug-in hybrid vehicles is indeed exempt from purchase tax, with official documents clearly stating the exemption until the end of 2024. Starting next year, the policy will change, and vehicles exceeding 339,000 RMB will be taxed on the difference. There's a calculation formula: the actual purchase price divided by 11.3 gives the theoretical purchase tax, and as long as it doesn't exceed 30,000 RMB, it's fully exempt. For example, a 350,000 RMB car with a theoretical purchase tax of about 31,000 RMB would only need to pay an additional 1,000 RMB. From the year after next, the tax exemption limit will gradually decrease, so the earlier you buy, the more cost-effective it is.

[Nolan]

The new energy vehicle tax exemption policy is divided into three stages: full exemption until the end of next year, a tax exemption cap of no more than 30,000 yuan the following year, and a gradual reduction of 5,000 yuan annually before 2027. Special reminder for friends buying used new energy vehicles—only the first owner can enjoy the tax exemption. When registering the vehicle, bring the vehicle factory certificate and purchase invoice, and the tax bureau system will automatically identify tax-exempt models. It is recommended to check the latest "Exemption Catalog" on the MIIT official website before purchasing, as some modified or special models may not be on the list.

[McAmara]

The calculation of vehicle purchase tax is quite simple: invoice price divided by 11.3. Currently, this tax is fully exempted for new energy vehicles, but 4S stores often play pricing tricks. For example, they may deliberately underreport the invoice price, seemingly helping you save on taxes, but in reality, it affects subsequent insurance claims and used car valuations. Pay special attention to the tax exemption validity period for vehicles—only newly purchased vehicles this year qualify. After 2025, the policy will tighten, so those considering high-end electric vehicles should act quickly. The tax exemption process is fully digitalized and can be completed on the tax app on the day of purchase.

[SanReed]

Three key points about the new energy vehicle purchase tax exemption: First, the current full exemption policy continues until December 31, 2024. Second, in 2025, a 'capped exemption' will be implemented, with the maximum exemption amount set at 30,000 yuan (equivalent to full exemption for vehicles priced below approximately 339,000 yuan). Third, from 2026 to 2027, the exemption amount will decrease by 5,000 yuan annually. For example: If you purchase a 400,000 yuan vehicle in 2025, the theoretical purchase tax would be 35,400 yuan. After deducting the 30,000 yuan exemption, you would need to pay 5,400 yuan in taxes. The tax exemption covers pure electric, plug-in hybrid, and fuel cell vehicles, but does not apply to commercial vehicles. It is recommended to keep the vehicle purchase tax payment certificate for future reference.