Do I Need to Pay Taxes When Buying Parallel Imported Cars?
2 Answers
Buying parallel imported cars requires paying taxes. However, it's important to note: 1. The selling price of parallel imported vehicles already includes tariffs, consumption taxes, and other fees. 2. Therefore, you only need to declare and pay the vehicle purchase tax to the national tax authority at the vehicle registration location when purchasing the car. Relevant information about parallel imported cars is as follows: 1. Parallel imported cars: These are vehicles purchased by traders from overseas markets and introduced into the Chinese market for sale without authorization from the brand manufacturer. 2. Price advantage: Parallel imported cars bypass sales channels such as general distributors, regional distributors, and 4S stores, eliminating many intermediate links. Moreover, the pricing of parallel imported cars by dealers is not restricted by the manufacturer, offering more freedom, thus resulting in significant price discounts. Typically, parallel imported cars are 10%~20% cheaper than China-spec vehicles.
As someone who frequently helps friends with car purchases, I must point out that parallel-import vehicles are not tax-exempt. You'll face three major taxes upon import: customs duty (calculated based on engine displacement and origin—25% for American cars, at least 15% for European models), a fixed 13% VAT, and an even steeper consumption tax that can reach 40% for 4.0L engines. After clearance, there's an additional 10% purchase tax—don't be fooled by dealers' 'tax-inclusive' pricing. Last month, I calculated taxes for Old Li's Land Rover, and they accounted for 40% of the vehicle price. Plus, annual vehicle and vessel tax applies: a few hundred for small engines, but up to 4,000-5,000 for big V8s. Always request the dealer's tax payment certificate—without it, you can't even get license plates.
