Do Used Cars Require Payment of Purchase Tax and Value-Added Tax?

[DeRylee]

No. The vehicle purchase tax is levied as a one-time payment. Vehicles that have already been subject to the purchase tax will not be taxed again upon resale, so used cars do not require payment of purchase tax or value-added tax. Article 14 of China's Vehicle Purchase Tax Law stipulates: If tax-exempt or tax-reduced vehicles are transferred or their usage is changed, making them no longer eligible for tax exemption or reduction, the taxpayer must pay the vehicle purchase tax before completing the transfer or change of registration. The taxable price is based on the original taxable price determined during the first tax declaration for the tax-exempt or tax-reduced vehicle, reduced by 10% for each full year. Purchase tax preferential policies: The state has implemented preferential purchase tax policies for new energy vehicles and small-displacement vehicles, offering reductions or exemptions on purchase tax. When these tax-reduced or tax-exempt vehicles are sold as used cars, the purchase tax must be repaid.