Do Parallel Imported Cars Require Tax Payment?
3 Answers
Parallel imported cars require tax payment. Below is more information about parallel imported cars: 1. Both parallel imported cars and those imported by authorized agents are subject to customs duties. 2. Value-added tax (VAT) and consumption tax are also required. Generally, high-quality parallel imported cars are still more expensive than their domestically produced counterparts of the same class. 3. Parallel imported cars refer to vehicles purchased by traders from overseas markets and introduced into the Chinese market for sale without authorization from the brand manufacturer. 4. Depending on the import source, they can be categorized as "U.S. specification cars," "Middle East version cars," etc., to distinguish them from "China specification cars" sold through traditional channels.
I previously bought a parallel-imported vehicle, and actually had to pay taxes on it. At the time, I purchased a Japanese car directly from overseas, thinking I could save a lot of money. But upon import, I had to pay a tariff of about 25% of the car's price, plus a 13% VAT, and a consumption tax that varied based on the engine displacement. My car had a fairly large engine, so the consumption tax was also high. After taxes, the total cost ended up being significantly higher than I had budgeted. I hired an agent to help with customs clearance during the process, which was quite cumbersome—I had to submit a pile of documents, such as a certificate of origin and the invoice. Although it was ultimately a bit cheaper than buying from an official 4S dealership, the savings weren’t as much as I had imagined, and I was also worried about warranty issues later on. In short, taxes are an unavoidable part of the process—it’s best to calculate these expenses clearly before buying a car. Don’t just look at the attractive sticker price, or you might end up losing money.
Parallel imported vehicles definitely require tax payments, which is something I'm quite concerned about. Many people in the market think that importing through unofficial channels can avoid taxes, but that's not the case. Upon import, you have to pay customs duties, typically 25%-30%, a 13% value-added tax, and consumption tax, with rates ranging from 1% to 40% depending on the engine displacement—especially higher for large-displacement vehicles. The overall cost might be 10%-20% lower than authorized imports, but the risk lies in poorer after-sales support. I recommend buyers choose reliable importers, ensuring proper customs declarations and keeping all tax records, which can reduce licensing hassles. In the long run, taxes are legally mandatory and unavoidable, so it's best to check local policies thoroughly before making a purchase.
