Is the Vehicle Purchase Tax Exempt in 2021?

[VanAmir]

From January 1, 2021, to December 31, 2022, the vehicle purchase tax is exempt for newly purchased new energy vehicles. New energy vehicles exempt from the vehicle purchase tax include pure electric vehicles, plug-in hybrid (including range-extended) vehicles, and fuel cell vehicles. The following are the main features of the new vehicle purchase tax policy in 2021: 1. The minimum taxable price has been abolished: A 10% tax is levied based on the invoice price (excluding VAT). 2. Additional fees are exempt: This refers to items like premium decorations being exempt from taxation. 3. It is harder for 4S shops to underreport invoice prices: Both 4S shops and consumers are required to pay the full tax amount.