Is Tax Payment Required for Vehicle Transfer?

[DelPaislee]

Tax payment is required for vehicle transfer. Taxes involved in the process of second-hand vehicle transfer include value-added tax and purchase tax. Below are detailed explanations: Value-added tax charging standards: If the declared actual transaction price of the second-hand vehicle is higher than the sales amount verified by the tax authority, the value-added tax calculation basis shall be based on the declared actual transaction price; if the declared transaction price is lower than the verified sales amount, the value-added tax calculation basis shall be based on the verified sales amount. Purchase tax varies by situation: If the purchased second-hand vehicle belonged to a model exempt from purchase tax when it was new, purchase tax must be repaid. The tax calculation price is based on the tax calculation price determined when the tax-exempt or tax-reduced vehicle first underwent tax declaration, with a 10% deduction for each full year.