Do new energy vehicles require purchase tax?
2 Answers
New energy vehicles are exempt from purchase tax. According to relevant regulations, new energy vehicles are exempt from purchase tax. Introduction to purchase tax: Purchase tax is a tax levied by tax authorities on the acquisition of certain properties and assets within the scope of the purchase tax system, such as vehicle purchase tax. Vehicle purchase tax is a tax levied on entities and individuals who purchase specified vehicles within China, evolving from the vehicle purchase surcharge. Calculation of tax rate for private vehicles: Taxable price = (total payment made to the seller for purchasing the taxable vehicle + additional fees) × 10%, where the taxable price does not include VAT.
Yes, new energy vehicles are basically exempt from purchase tax now, which is an incentive policy from the government. When I bought a pure electric vehicle myself at a 4S store, the salesperson directly told me that I didn’t need to pay this fee, saving me tens of thousands of yuan. The purchase tax is usually 10% of the vehicle price, which is a significant expense for fuel-powered cars. However, new energy vehicles, including pure electric and plug-in hybrid models, are automatically exempt as long as they are listed in the national new energy vehicle catalog. The government introduced this policy around 2014, and it has now been extended to the end of 2027, mainly to reduce pollution and promote green transportation. I think this policy is excellent because it makes it easier for more people to switch to new energy vehicles while also reducing exhaust emissions. Of course, you need to ensure that the vehicle is purchased through official channels and avoid buying non-compliant models to prevent issues. It’s also important to stay updated on tax policy changes regularly to avoid potential disadvantages if the policy expires in the future.
