Do Used Cars Require Payment of Vehicle Purchase Tax?
2 Answers
Whether a used car requires payment of vehicle purchase tax depends on two scenarios: whether the original owner has paid the purchase tax or not. If the original owner has paid the purchase tax, the used car does not require payment again. The vehicle purchase tax is only paid once, typically at the time of purchasing a new car. However, the original owner must provide complete proof of purchase tax payment. With this tax payment certificate, the buyer of the used car does not need to pay the purchase tax. If the purchase tax was not paid when the new car was bought, then after the used car transaction, the new owner must pay the remaining purchase tax. Legal Provisions: Article 14 of the "People's Republic of China Vehicle Purchase Tax Law": If tax-exempt or tax-reduced vehicles no longer qualify for exemption or reduction due to reasons such as transfer or change of use, the taxpayer shall pay the vehicle purchase tax before completing the vehicle transfer registration or change of registration. The taxable price shall be based on the taxable price determined at the time of the initial tax declaration for the tax-exempt or tax-reduced vehicle, with a 10% reduction for each full year. Solutions for Lost Vehicle Purchase Tax Payment Certificates by the Original Owner: If the original owner does not have the vehicle purchase tax payment certificate, it is necessary to inquire whether it was lost or if the vehicle was tax-exempt. If the purchase tax payment certificate was lost, the original owner can apply for a replacement. If the vehicle was tax-exempt, the vehicle purchase tax must be paid in accordance with the relevant provisions of the "Interim Regulations on Vehicle Purchase Tax" of the country.
Oh, when I first bought a used car, I was also wondering if I still needed to pay the purchase tax. Turns out, the purchase tax is paid when a new car is registered—it's a one-time upfront cost. Since my car is used, the previous owner had already paid it in full, so I didn’t have to pay a single penny in purchase tax. However, buying a used car isn’t completely free—there’s still the transfer process, so I had to pay some transfer fees and service charges. I also took the chance to inspect the car’s condition to avoid any issues later. It’s good to remember this to steer clear of pitfalls. Buying used is really cost-effective—the money saved can even be used for some upgrades. Anyway, I’m driving smoothly now, just reminding everyone not to overthink the tax stuff—just make sure to ask the right questions and do the necessary checks. Overall, it was a pretty good deal.
