Do Used Cars Still Require Payment of Purchase Tax?

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Used cars do not require payment of vehicle purchase tax. The vehicle purchase tax is levied once, and vehicles that have already been subject to the vehicle purchase tax will not be taxed again. The vehicle purchase tax is collected by the State Taxation Administration, and the tax must be paid in full at one time. Taxpayers should present the tax payment certificate or tax exemption certificate issued by the competent tax authority to the vehicle management agency of the public security organ to complete the vehicle registration procedures; without the tax payment certificate or tax exemption certificate, the vehicle management agency of the public security organ cannot proceed with the vehicle registration. When purchasing a used car, the buyer should request the tax payment certificate from the original owner. The tax payment certificate consists of an original and a copy, issued per vehicle, with one certificate per vehicle. The original is kept by the owner, and the copy is used for vehicle registration. According to Article 11 of the "Vehicle Purchase Tax Law of the People's Republic of China": Taxpayers purchasing taxable vehicles should declare and pay the vehicle purchase tax to the competent tax authority at the place of vehicle registration; for taxable vehicles that do not require registration, the tax should be declared and paid to the competent tax authority at the taxpayer's location. Article 13: Taxpayers should pay the vehicle purchase tax before registering the vehicle with the traffic management department of the public security organ. The traffic management department of the public security organ, when processing vehicle registration, should verify the vehicle information submitted by the taxpayer against the tax payment or tax exemption electronic information provided by the tax authority. Only after verification is confirmed correct can the vehicle registration be processed according to the law. According to Article 4 of the "Vehicle Purchase Tax Law of the People's Republic of China": The vehicle purchase tax rate is 10%; Article 5: The amount of vehicle purchase tax payable is calculated by multiplying the taxable vehicle's tax base by the tax rate; Article 6: The tax base of taxable vehicles is determined according to the following provisions: For taxpayers purchasing taxable vehicles for personal use, the tax base is the total amount actually paid to the seller, excluding VAT; For taxpayers importing taxable vehicles for personal use, the tax base is the customs duty-paid price plus customs duties and consumption tax; For taxpayers producing taxable vehicles for personal use, the tax base is determined based on the selling price of similar taxable vehicles produced by the taxpayer, excluding VAT; For taxpayers obtaining taxable vehicles for personal use through donation, award, or other means, the tax base is determined based on the price stated in the relevant documents at the time of acquisition, excluding VAT. Article 7: If the tax base declared by the taxpayer for a taxable vehicle is significantly low without justifiable reason, the tax authority shall determine the taxable amount in accordance with the "Tax Collection and Administration Law of the People's Republic of China."