Is the Vehicle and Vessel Tax Required to Be Paid Annually?
3 Answers
The Vehicle and Vessel Usage Tax must be paid every year. Late payment may incur a certain amount of late fees, and the tax payment status will be checked during the vehicle's annual inspection. Failure to pay the tax will result in the vehicle not passing the annual inspection. Currently, there are several ways to pay the Vehicle and Vessel Tax: 1. The Vehicle and Vessel Tax is generally paid together with the compulsory traffic insurance. 2. In some provinces, the Vehicle and Vessel Tax can now be paid online. 3. Taxpayers can also declare and pay the Vehicle and Vessel Tax to the local tax authority, with the payment location being the place where the vehicle is registered. However, it is not recommended to pay it separately; it is best to have it collected by the insurance company together with the compulsory traffic insurance.
The vehicle and vessel tax is indeed an annual obligation, which I’ve personally experienced. Two years ago, after moving, I forgot to pay it on time, and my annual inspection was held up as a result—I ended up having to pay late fees. Unlike insurance, which you can buy for multiple years at once, this is a mandatory yearly expense. The payment methods are quite flexible: you can pay directly on the tax bureau’s website, through many cities’ government apps, or even make a late payment at the vehicle inspection office during your annual check-up. It’s best not to wait until the end of the year, as vehicles with larger engine displacements face higher tax rates—paying early saves hassle. I’ve set an annual reminder on my phone because driving responsibly means being accountable for both safety and compliance with regulations.
Paying the annual vehicle and vessel tax is a certainty, a regulation I've known since purchasing my car over a decade ago. Once, a friend mentioned that his 3.0L off-road vehicle's annual tax was over a thousand yuan higher than my 1.6L sedan due to the displacement difference. Payment methods have become more convenient over the years—gone are the days of visiting the tax bureau; now, it's all done by linking vehicle information through WeChat or Alipay. New car owners should note that even when buying a used car, the tax for the remaining months of the first year must be paid proportionally. Also, a reminder: this fee is separate from insurance, so don't assume comprehensive coverage includes the tax. I usually handle it three months before the annual inspection to avoid forgetting and the year-end rush.
