Can Vehicle Purchase Tax Be Deducted?

[PaisleeDella]

Vehicle purchase tax cannot be deducted. The collection content of vehicle purchase tax: 1. Refund due to quality issues: For vehicles on which purchase tax has been paid, if they need to be returned to the manufacturer due to quality problems, a tax refund can be processed with the manufacturer's return certificate; the original tax payment certificate must be surrendered for the refund; failure to submit the original tax payment certificate will result in no refund. 2. Replacement due to quality issues: For vehicles on which purchase tax has been paid, if they need to be replaced by the manufacturer due to quality problems, the vehicle purchase tax change procedure can be processed with the manufacturer's replacement certificate and the invoice of the new vehicle, and the original tax payment certificate of the original vehicle must be surrendered; failure to submit the original tax payment certificate will result in no processing of the vehicle purchase tax change procedure.

[Terri]

Last time when my buddy bought a car, he asked the tax bureau staff and was clearly told that private car purchase tax simply cannot be deducted. That 10% tax is a mandatory cost you pay to the state when registering the vehicle - once paid, it's gone for good. However, if you're running a business and buy purely cargo vehicles like pickup trucks or vans under the company's name, you can deduct 13% VAT from the invoice. When I ran my auto repair shop, the work truck I bought had its VAT deducted - but note, it's VAT deduction not purchase tax deduction, totally different things. Don't even think about trying this with family sedans, the tax authorities audit this very strictly.

[JosephineRose]

As a corporate finance professional, I must remind you: only enterprises that have completed tax registration can deduct VAT for purchasing transport vehicles exclusively used for production and operation. The deduction process is quite complex—you must complete vehicle inspection and obtain blue license plates, then use the unified invoice for motor vehicle sales and the tax payment certificate for vehicle purchase tax to deduct input VAT when declaring VAT. However, private cars and passenger vehicles with fewer than seven seats are not eligible! Last week, a client wanted to deduct tax for a personally purchased Audi under the company's name, but I stopped them immediately. If discovered, this would be considered tax evasion.

[GemmaDella]

New car buyers often confuse purchase tax with VAT. Simply put: the 10% purchase tax that makes the car more expensive must be paid regardless of what car you buy, and it cannot be deducted. However, for businesses buying vehicles for production and operation, the 13% VAT included in the car purchase invoice can be deducted. Last year, my neighbor who runs a supermarket bought a Wuling Rongguang mini-truck and deducted over 8,000 yuan in VAT. Remember three key points: it's the VAT that can be deducted, not the purchase tax; the purchase must be made in the company's name; and the vehicle must be actually used for business. Don’t bother thinking about this for family cars.