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.

[McClayton]

Speaking of the vehicle purchase tax in 2021, I was quite focused on this topic at the time. Overall, the tax exemption policy mainly targeted new energy vehicles, such as electric vehicles or plug-in hybrids. These types continued to enjoy the exemption from purchase tax under the national policy in 2021, meaning buyers could save the entire tax amount—equivalent to a direct 10% discount on the vehicle price, which was quite a good deal. However, for conventional fuel-powered vehicles, such as gasoline or diesel cars, the standard 10% tax rate still applied without any exemptions. I remember researching the policy online back then and realizing that the government introduced this measure to promote the development of new energy vehicles. So, if saving money was a priority, opting for a new energy vehicle was a smart choice. Looking back now, people who bought cars in 2021 really had the chance to grab a great deal. However, policy details can change over time, so it’s advisable to check official announcements before making a purchase to avoid any misunderstandings.

[CaydenLynn]

Haha, as someone who often thinks about saving money, I've researched car purchases in 2021. Back then, regarding purchase taxes, new energy vehicles like Tesla or BYD electric cars were tax-exempt, which really saved a lot of cash—almost tens of thousands less. But conventional gasoline cars weren't so lucky; they still had to pay a 10% tax. So if you were aiming to save money, choosing a new energy vehicle in 2021 was definitely a smart move. My friend bought an electric car that year and paid no tax at all—he joked that it was enough to cover a whole year's worth of fuel! Of course, policies occasionally adjust, so you should confirm the regulations at the time, like checking the finance department's announcements, to avoid getting tricked. In short, don’t rush—compare the tax burdens of different models carefully.

[VonAshley]

Simply put, the 2021 vehicle purchase tax exemption was mainly a preferential policy for new energy vehicles, while traditional fuel-powered vehicles were generally not exempt. The standard purchase tax rate is 10% of the vehicle price, but new energy vehicles such as pure electric or hybrid models enjoyed full exemption, a policy that remained in effect until then. When I researched the details, I found this could help consumers save thousands to tens of thousands in costs—just pay attention to whether the brand and model fall within the tax-exempt category when choosing a car. The specific policy details were listed in the catalog issued by the Ministry of Finance.