Do new energy vehicles need to pay vehicle purchase tax?
1 Answers
New energy vehicles are exempt from vehicle purchase tax. The Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology jointly issued the "Announcement on the Exemption of Vehicle Purchase Tax for New Energy Vehicles," stating that from January 1, 2021, to December 31, 2022, the purchase of new energy vehicles is exempt from vehicle purchase tax. New energy vehicles exempt from vehicle purchase tax include pure electric vehicles, plug-in hybrid (including range-extended) vehicles, and fuel cell vehicles. Calculation method for purchase tax: Vehicle purchase tax is calculated based on the ad valorem rate method. The calculation formula is: tax payable = taxable price × tax rate. If a consumer purchases a domestic private vehicle, the taxable price is the total payment to the dealer and additional fees, excluding the value-added tax (VAT) (17%). Since the purchase price on the special invoice for motor vehicle sales includes VAT, the VAT must be deducted first when calculating the vehicle purchase tax, i.e., taxable price = invoice price ÷ 1.17, and then the vehicle purchase tax is calculated at a 10% rate. Note: The exemption policy for new energy vehicles listed in the "Catalog" before December 31, 2020, remains valid.
