Is the Vehicle and Vessel Tax Required to be Paid Annually?
2 Answers
The full name of the Vehicle and Vessel Tax is the Vehicle and Vessel Usage Tax. The Vehicle and Vessel Tax must be paid annually, and taxpayers who meet the tax payment standards are required to pay it once a year. Additional Information: According to the "Implementation Regulations of the Vehicle and Vessel Tax Law of the People's Republic of China" 1. Article 19: (1) For newly purchased vehicles and vessels, the taxable amount for the year of purchase shall be calculated on a monthly basis from the month when the tax liability arises. The taxable amount is the annual taxable amount divided by 12 and multiplied by the number of taxable months. (2) Within a tax year, if a taxed vehicle or vessel is stolen, scrapped, or lost, the taxpayer may apply to the competent tax authority at the place of tax payment for a refund of the tax from the month of theft, scrapping, or loss to the end of the tax year, by presenting the relevant certificates issued by the administrative authority and the tax payment receipt. (3) If a stolen or lost vehicle or vessel that has been refunded is recovered, the taxpayer shall calculate and pay the Vehicle and Vessel Tax from the month when the relevant certificate is issued by the public security authority. 2. Article 20: If a taxed vehicle or vessel is transferred within the same tax year, no additional tax shall be paid, nor shall any tax be refunded.
I just bought a new car last year, and the dealer reminded me that the vehicle and vessel tax must be paid annually, bundled with the compulsory traffic insurance. The tax rate depends on the engine displacement—for example, engines below 1.6L cost me 400 yuan per year, and larger displacements incur higher fees. The payment deadline is usually in early January or late December. Missing it may result in late fees or even hold up your vehicle's annual inspection. I recommend setting a reminder on your phone calendar or linking it to automatic deductions when renewing your insurance. This tax is collected by the government for road construction and maintenance, so it’s a way for all car owners to contribute. In short, it’s a legal requirement—don’t cut corners or delay, as these routine costs are part of the total cost of car ownership.
