Do You Need to Pay Purchase Tax When Buying a Demo Car?

[LaAutumn]

Buying a demo car does not require paying purchase tax because the demo car has already been registered, and the subsequent transaction is considered a used car sale. However, the buyer should request the original purchase tax payment certificate. Below is relevant information about purchase tax payment. Relevant Regulations and Special Cases: Vehicle purchase tax is levied as a one-time payment. If the vehicle has already been subject to purchase tax, it will not be levied again. However, some vehicle models may qualify for a 50% reduction or exemption from purchase tax when purchased as new cars. For such vehicles, the purchase tax must be repaid when sold as used cars. Gradual Reduction in Tax Repayment: The taxable price is based on the original taxable price determined at the time of the initial tax declaration for tax-exempt or tax-reduced vehicles, with a 10% reduction for each full year.