Are There Purchase Taxes for New Energy Vehicles?
2 Answers
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.
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.
