Do used cars still require payment of purchase tax?

[SarahLynn]

Used cars do not require payment of vehicle purchase tax. The vehicle purchase tax is levied only once. For vehicles that have already been subject to purchase tax, no additional purchase tax will be levied. The vehicle purchase tax is collected by the State Taxation Administration and must be paid in full at one time. The taxpayer 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 for vehicle registration procedures. Without a tax payment certificate or tax exemption certificate, the vehicle management agency of the public security organ cannot process the vehicle registration. When purchasing a used car, the buyer should request the tax payment certificate from the original owner. The tax payment certificate is divided into 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. If the new car was not subject to purchase tax when purchased, the new owner will need to pay the purchase tax after the used car transaction. 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 in the vehicle registration area. For taxable vehicles that do not require registration, the taxpayer should declare and pay the vehicle purchase tax to the competent tax authority in their location. Article 12: The tax liability for vehicle purchase tax arises on the day the taxpayer purchases the taxable vehicle, and the taxpayer should declare and pay the vehicle purchase tax within 60 days from the date the tax liability arises. Article 13: The taxpayer 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 should verify the vehicle registration information based on the tax payment or tax exemption electronic information provided by the tax authority. After verification, the vehicle registration will be processed according to 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 price of the vehicle by the tax rate. Article 6: The taxable price of the vehicle is determined according to the following provisions: For taxpayers purchasing taxable vehicles for personal use, the taxable price is the total amount actually paid to the seller, excluding VAT. For taxpayers importing taxable vehicles for personal use, the taxable price is the customs duty-paid price plus customs duties and consumption tax. For taxpayers producing taxable vehicles for personal use, the taxable price is determined based on the sales price of similar taxable vehicles produced by the taxpayer, excluding VAT. For taxpayers acquiring taxable vehicles for personal use through donation, awards, or other means, the taxable price is determined based on the price stated in the relevant documents when acquiring the vehicle, excluding VAT. Article 7: If the taxable price declared by the taxpayer is significantly low without justifiable reasons, the tax authority will determine the taxable amount according to the "Tax Collection and Administration Law of the People's Republic of China."