Is There No Purchase Tax for New Energy Vehicles?

[MargaretLynn]

According to the "Announcement on Exempting New Energy Vehicles from Vehicle Purchase Tax," from January 1, 2018, to December 31, 2020, the purchase tax on new energy vehicles is exempted. Vehicles exempt from purchase tax include pure electric vehicles, plug-in (including range-extended) hybrid vehicles, and fuel cell vehicles. Starting from January 1, 2018, new energy vehicles listed in the "Catalog" must meet the following conditions: 1. Authorization: Pure electric vehicles, plug-in (including range-extended) hybrid vehicles, and fuel cell vehicles authorized for sale in China. 2. Technical Compliance: Compliance with the technical requirements for new energy vehicle products. 3. Standards Met: Passing the special inspection for new energy vehicles and meeting the special inspection standards for new energy vehicle products. 4. Quality Assurance: New energy vehicle manufacturers or import dealers must meet relevant requirements in product quality assurance, consistency, after-sales service, safety monitoring, and power battery recycling.

[OwenAnn]

Buying a new energy vehicle is indeed exempt from purchase tax! I’ve been keeping an eye on this policy because I hesitated when buying a car last year. To encourage environmental protection, the government introduced a policy years ago that completely exempts new energy vehicles from purchase tax—this is real savings. For conventional fuel vehicles, the purchase tax is 10% of the car’s price, meaning a ¥200,000 car can save you ¥20,000, which can be used for charging equipment or interior upgrades. Of course, policies may change—the tax exemption is currently in place until 2025, but if new energy vehicle sales surge in the future, the exemption might not last. I think this tax-free measure makes more ordinary families like mine willing to switch to new energy vehicles, especially since fuel costs are high now, and electric vehicles have lower daily maintenance costs. However, remember you still need to complete the registration process when getting your license plate—don’t assume tax exemption means no registration. In short, take advantage of this now—it’s a great deal.

[LeIsabella]

I know all too well that new energy vehicles are indeed exempt from purchase tax. Last month, when I was helping a friend choose a car, I specifically checked the policy. Currently, buying a pure electric vehicle or plug-in hybrid vehicle is completely exempt from that 10% tax, directly saving you several thousand to tens of thousands. This money can be used to install a home charging station or upgrade safety features, making driving even more secure. The government is doing this mainly to promote green transportation and reduce pollution, which is why we've seen more new energy vehicles on the streets in recent years. Personally, I think this is a golden opportunity. If you wait until the policy expires in two years, the tax might be reinstated. Although daily driving of electric vehicles still requires considering range and charging stations, the absence of tax makes the overall price more affordable, especially for young people.

[DelKimberly]

Are new energy vehicles tax-exempt? Yes, currently the policy exempts purchase tax. I remember the government introduced this regulation to encourage people to use fewer fuel-powered vehicles and reduce emissions. The full 10% cost for regular car purchases is completely waived, and the money saved can help cover insurance or other expenses. However, you need to pay attention to details, such as ensuring the vehicle model category is clearly stated on the purchase invoice to avoid any mistakes regarding tax exemption eligibility.