Do Used Cars Require Tax Payment?

[EmilianoLee]

Used cars require tax payment. Tax Introduction: During the process of used car transfer, dealers must pay taxes, and buyers may also need to pay taxes under certain circumstances. The taxes involved in the used car transfer process include value-added tax, purchase tax, and transfer fees. Theoretically, transfer fees are not considered taxes, but since they are paid to the government, they are included here. Relevant Regulations: Purchase tax is only required when buying a new car. However, if the used car purchased was originally a model exempt from purchase tax when new, the purchase tax must be paid retroactively. According to Article 14 of the "Vehicle Purchase Tax Law of the People's Republic of China," if a tax-exempt or tax-reduced vehicle is no longer eligible for exemption or reduction due to transfer or change of purpose, the taxpayer must pay the vehicle purchase tax before completing the vehicle transfer registration or change registration. The taxable price is based on the taxable price determined at the initial tax declaration of the tax-exempt or tax-reduced vehicle, with a 10% reduction for each full year.