Is Vehicle and Vessel Tax Required Annually for Vehicles?
4 Answers
Vehicle and Vessel Tax, with its full name being Vehicle and Vessel Usage Tax, is an annual obligation for taxpayers who meet the criteria. It must be paid once every 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 or vessels, the taxable amount for the year of purchase is calculated monthly from the month when the tax liability arises. The taxable amount is the annual taxable amount divided by 12, then 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 for a tax refund from the competent tax authority at the place of taxation. The refund covers the period from the month of theft, scrapping, or loss to the end of the tax year, based on proof issued by the relevant authorities and tax payment receipts. (3) If a stolen or lost vehicle or vessel for which a tax refund has been processed is recovered, the taxpayer must resume paying the tax from the month when the relevant proof is issued by the public security authorities. 2. Article 20: For vehicles or vessels on which the Vehicle and Vessel Tax has been paid and are transferred within the same tax year, no additional tax is required, nor is any tax refunded.
As a car owner, I have to pay the vehicle and vessel tax every year—it's a must. I remember when I first bought the car, the insurance company mentioned it during the policy purchase, and that's how I learned about this fixed expense. The tax is calculated based on the vehicle's displacement—higher displacement means higher tax. For my 1.5L compact car, the tax is relatively low, around 300–400 yuan. Not paying it leads to big trouble—annual inspection will definitely fail, and in severe cases, you could be stopped while driving. This rule applies nationwide in China, and insurance companies collect it directly, which is quite convenient. Actually, this tax is meant to fund traffic management, with everyone sharing the cost. After driving for a few years, I make sure to handle it during the insurance renewal season—don’t underestimate this expense, as small amounts add up over time.
According to national regulations, vehicle owners are required to pay an annual vehicle and vessel tax. I have studied the policy details—it is a fixed property tax mainly collected alongside compulsory traffic insurance. The tax rate is determined by vehicle type and engine displacement, with economical compact cars subject to lower rates. This tax is enforced nationwide to support transportation infrastructure. There are minor regional variations—for instance, Beijing has slightly higher rates while Shanghai remains relatively stable. I advise owners to carefully review their insurance bills, as this payment cannot be overlooked. Late payments may result in fines and affect annual vehicle inspections. Understanding these details makes annual expense planning more manageable.
Yes, the vehicle and vessel tax is unavoidable every year. As a driver, I've long gotten used to it—I just pay it when buying insurance. The tax amount depends on engine displacement, with smaller cars being cheaper and larger ones more expensive. It's incredibly simple to handle when processing insurance through an app—just one click. Don't procrastinate, or you'll hit a roadblock during the annual inspection. Nowadays, I prioritize smaller-displacement cars when choosing a vehicle—they save on taxes and are more eco-friendly. Overall, it's a national regulation, and everyone needs to keep up—just don't be lazy about it.
