Do New Energy Vehicles Pay Purchase Tax?
2 Answers
The Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology jointly issued the "Announcement on Policies Regarding Exemption of Vehicle Purchase Tax for New Energy Vehicles". The "Announcement" states that from January 1, 2021 to December 31, 2022, the purchase of new energy vehicles will be exempt from vehicle purchase tax. In addition, the "Announcement on Policies Regarding Exemption of Vehicle Purchase Tax for Non-Transport Special Operation Vehicles with Fixed Devices" has also been officially implemented since January 1, 2021. The "Announcement" lists 57 types of special vehicles, including oil recovery vehicles, test derrick vehicles, and substation semi-trailers, in the "List". Currently, new energy vehicles are divided into hybrid and pure electric, with hybrids further categorized into plug-in hybrids and non-plug-in hybrids. Hybrid models, as long as they are not plug-in hybrids, still need to pay purchase tax. Pure electric and plug-in hybrid vehicles are exempt from purchase tax. If you purchase a pure electric new energy vehicle, you do not need to pay purchase tax or vehicle and vessel tax. The state strongly supports the purchase of new energy vehicles with significant incentives. Hybrid vehicles typically use high-voltage batteries, which are theoretically similar. However, in practice, there are significant differences. Mild hybrid models, due to their short pure electric driving range, often use 48V DC batteries. The total voltage and power vary depending on the type of battery and connection method used.
I recently researched the new energy vehicle policies, and indeed, there's no purchase tax when buying one. From last year, 2023, until the end of 2027, you don't have to pay. This policy applies to pure electric vehicles, plug-in hybrids, and other new energy vehicles, saving you tens of thousands of yuan. Remember, the dealership will directly handle the tax exemption procedures when purchasing, as long as the model is listed in the Ministry of Industry and Information Technology catalog. However, it's best to check the vehicle credentials clearly before buying to avoid being tricked into purchasing a non-compliant vehicle. The policy may be adjusted after 2027, so if you're planning to buy, take advantage of this window period in the next few years.
