Can a car be licensed without paying the purchase tax?
4 Answers
No, a car cannot be licensed without paying the purchase tax. According to Article 13 of the "Vehicle Purchase Tax Law of the People's Republic of China" (hereinafter referred to as the "Purchase Tax Law"), which came into effect on July 1, 2019, taxpayers must pay the vehicle purchase tax before registering the vehicle with the traffic management department of the public security authority. The tax liability for the vehicle purchase tax arises on the day the taxpayer purchases the taxable vehicle, and the taxpayer must declare and pay the vehicle purchase tax within sixty days from the date the tax liability arises. Therefore, the purchase tax must be paid within three months after buying the car. The process of paying the purchase tax is also straightforward. The taxpayer only needs to bring the original purchase invoice, the original tax payment copy of the purchase invoice, the original and a copy of the vehicle's factory certificate of conformity, the driver's ID card and a copy, and the tax declaration form to the local tax service hall and apply for the vehicle purchase tax payment at the relevant window. If you don't have time to license the car after paying the purchase tax, you can postpone the licensing and use a temporary license plate temporarily. However, the validity period of the temporary license plate cannot exceed fifteen days, and the vehicle management office cannot issue temporary license plates more than three times.
Talking about whether you can skip paying the purchase tax and directly license a car after buying it, I’ve had personal experience with this from purchasing several cars myself. When buying a car, the salesperson at the 4S store repeatedly emphasized that the purchase tax is a national tax, and you must obtain a tax payment certificate from the tax bureau. Without this piece of paper, the vehicle management office won’t even accept your materials, let alone process the license. I remember last year when a friend tried to bypass the tax procedures, they ended up making several wasted trips to the vehicle management office, not only getting chased for back taxes but also fined thousands in late fees—it was a huge loss. In reality, the bulk of the purchase tax goes into road construction funds and environmental projects. For example, repairs and maintenance on national highways are funded from this pool. Paying on time is the only way to feel at ease. If you’re worried about the budget being too high, you can opt for energy-efficient vehicles that qualify for tax reductions or local subsidy policies. But tax evasion is a no-go—completing the tax payment properly before driving is the only way to feel secure. Otherwise, driving an unlicensed car around is just asking to get pulled over.
Based on our experience in the automotive industry, having bought and sold cars countless times, the vehicle purchase tax is an unavoidable hurdle. Salespeople always remind car owners: only after paying the fee and obtaining the certificate at the tax bureau will the vehicle management office register your license plate. Some think having the new car invoice is enough, but in reality, the invoice only proves the transaction—without the tax bureau's certificate, it's a no-go. Last year, a client who thought the tax was too high delayed the process for a month, ended up paying back taxes plus a fine, and even faced temporary vehicle seizure, losing far more than the tax amount. It's advisable to calculate the vehicle purchase tax ratio before buying a car—a 10% tax on the car's price is no small amount. However, many new energy vehicles now enjoy half or full tax exemptions, which can save you a chunk of money. In short, don't gamble with the odds—paying taxes and completing the paperwork is the right path, ensuring your car is driven safely and with dignity.
As someone who likes to delve into tax matters, I have to be honest—there's no hope of registering a car without paying the purchase tax. The purchase tax is a mandatory national requirement for new vehicles, calculated at 10% of the car's price, and you must pay it in full to obtain the certificate needed for registration. Some mistakenly believe they can bypass it through private transfers, but in reality, the DMV checks the tax payment system during transfers. The consequences of non-payment are severe: late fees, fines, or even vehicle seizure. A money-saving tip is to buy tax-advantaged vehicles like hybrids or new energy vehicles, which may have a tax rate as low as zero—compliant, tax-saving, and worry-free for the road. Tax revenues fund road maintenance and environmental initiatives, so paying on time is a contribution to public welfare.
