Can You Get License Plates Without Paying Vehicle Purchase Tax?
3 Answers
You cannot get license plates without paying the vehicle purchase tax. The vehicle management office will only issue license plates after the tax has been paid. Additionally, compulsory traffic insurance must be purchased before license plates can be obtained. More information about vehicle purchase tax is as follows: 1. Vehicle Purchase Tax: The purchase tax is a tax levied by tax authorities on the acquisition of specified properties and assets within the scope of the tax system, such as the vehicle purchase tax. It is a tax imposed on units and individuals who purchase designated vehicles within China, evolving from the vehicle purchase surcharge. 2. Specific Tax Rate: The current basic regulation for vehicle purchase tax is the "Interim Regulations of the People's Republic of China on Vehicle Purchase Tax," effective from January 1, 2001. The taxpayers of vehicle purchase tax are units and individuals who acquire taxable vehicles (including purchase, import, self-production, gift, award, or other means of acquisition for personal use). The taxable scope includes cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles, with a tax rate of 10%. The formula for calculating the tax payable is: Tax Payable = Taxable Price * Tax Rate.
I think this is quite common. Many people assume they can directly license a newly purchased car, but that's not the case. The purchase tax is a mandatory state levy—you must pay it before registering the vehicle. I recall the salesperson reminding me to promptly visit the tax bureau for payment; otherwise, the DMV wouldn’t accept the registration application. The tax rate is typically around 10% of the car’s price—for example, a ¥200,000 car requires a ¥20,000 tax payment. Without the tax receipt, the system flags an exception, preventing the vehicle from being certified as road-legal. Worse, it triggers follow-up issues: inability to insure the car, failed annual inspections, and potential fines or penalty points if caught by traffic police. So don’t cut corners—completing tax procedures immediately after purchase is the safest approach.
Having spent some time at a car dealership, I've handled quite a few inquiries from car owners about this. The purchase tax is mandatory; otherwise, the vehicle registration process will fall through. The DMV has a system that automatically verifies tax payment records, and missing proof of payment will result in immediate rejection of the application materials. Actually, calculating the tax rate is straightforward—it's based on the car's price, and paying it is hassle-free—just a few minutes at the tax office or via an online app. The risks of not paying are significant: the car can't be driven legally, insurance becomes invalid, and it might even get towed. I've seen cases where people delayed payment, resulting in weeks of delays in license plate applications and disrupted car usage. My advice to buyers is to get it done as soon as they take delivery of the car—don't risk major losses for minor savings.
