Do I Need to Pay Taxes When Buying Parallel Imported Cars?
4 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.
I've handled three parallel-imported vehicles, and it's crucial to understand the tax implications. New cars are subject to customs duty and VAT upon port arrival, while consumption tax depends on the engine displacement you choose – for instance, selecting a 2.0T over a 4.0T can save you over 100,000 yuan in taxes. The purchase tax is 10% of the invoice price. Dealers often advertise 'all-inclusive prices,' but they might actually pass these taxes onto buyers. Two years ago, when I bought a BMW X5, I paid over 80,000 yuan in customs duty alone, but it was still 15% cheaper than the China-spec version. Remember to keep the customs tax payment receipt, as the DMV will verify it during registration – retroactive tax payments are a hassle.
My recent experience buying a parallel-import Mercedes taught me: taxes are absolutely unavoidable. There are basically three categories: import duties (tariff/VAT/consumption tax), vehicle purchase tax, and annual vehicle and vessel tax. The key factor is engine displacement - my GLC300 with 2.0L engine has 15% tariff plus 13% VAT, but 3.0T models pay 12% more in consumption tax alone. I recommend getting a detailed tax breakdown from the dealer before signing contracts. Some buyers get attracted by low quotes but end up paying 70,000-80,000 yuan extra in taxes.
