Do second-hand cars require payment of purchase tax?
2 Answers
The purchase and sale of second-hand cars do not require payment of purchase tax; only new cars are subject to purchase tax. This is one of the cost-saving benefits of buying a used car. Only transfer fees (including transaction invoice fees, license plate fees, and appraisal fees in some regions) are required, typically amounting to a few hundred yuan. Below is relevant information: 1. Regulation: Starting from January 1, 2012, when a vehicle undergoes transfer, relocation, or modification, it is no longer necessary to handle vehicle purchase tax-related procedures with the tax authorities. This refers to the purchase tax portion of the vehicle and does not conflict with any aspects of second-hand car transactions. 2. Purchase Tax: Purchase tax is a tax levied by tax authorities on the acquisition of specified 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.
Many people worry about double taxation when buying used cars, but I've specifically researched this. The purchase tax levied by the state is paid when a new car is first registered, essentially forming part of the vehicle's initial landing cost. Used car transactions fundamentally involve ownership transfer and don't trigger purchase tax obligations at all. I've seen many people mistakenly believe they need to pay double taxes - this is completely unnecessary. You only need to focus on transfer fees and transaction taxes. In practice, you just pay a few hundred yuan in transfer fees plus vehicle inspection fees, which are much cheaper than purchase tax. However, be aware that if the seller's new car hasn't paid purchase tax yet, this responsibility transfers to the buyer, so always check the tax payment certificate before transacting.
