Do Electric Vehicles Pay Purchase Tax?

[DiRosalie]

Electric vehicles listed in the new energy vehicle catalog are exempt from purchase tax when being registered. Here are the relevant details: Definition of Purchase Tax: Purchase tax is a tax levied by tax authorities on the acquisition of specified properties and assets within the scope of the purchase tax system, such as vehicle purchase tax. Vehicle purchase tax is a tax imposed on entities and individuals purchasing specified vehicles within the country, evolving from the vehicle purchase surcharge. Starting from January 1, 2018, the purchase tax rate for consumers buying passenger vehicles with 1.6 liters or smaller displacement was restored to 10%. Prior to this, the purchase tax rate was 7.5%. Purchase Tax Calculation Formula: Vehicle Purchase Tax Payable = Taxable Price X 10% (7.5% for passenger vehicles with 1.6 liters or smaller displacement). The taxable price is determined based on different circumstances.