Is Vehicle Registration Required When Paying Purchase Tax?
2 Answers
Paying purchase tax requires vehicle registration, which is generally done after the payment. Introduction to Purchase Tax: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China. It evolved from the vehicle purchase surcharge. The current basic regulations of the vehicle purchase tax law are implemented from January 1, 2001, under the "Interim Regulations of the People's Republic of China on Vehicle Purchase Tax." Time Limit for Paying Purchase Tax: Vehicle owners must declare the tax within 60 days of purchasing the vehicle. Late payments will incur a late fee of 0.05% of the purchase tax amount per day.
Last year, I went through the entire process of buying a new car. Paying the purchase tax wasn’t directly part of the vehicle registration but a necessary preparatory step. I remember that day—I first paid for the car at the 4S dealership, and the salesperson reminded me that the purchase tax had to be paid separately, usually at the tax office or through the dealership’s agency. After paying the tax, I received a tax payment certificate, which was crucial—without it, the DMV wouldn’t process the registration at all. Registration is the actual process of getting the license plate, involving vehicle inspection, selecting a plate number, and obtaining the vehicle license. Overall, paying the tax was just a small step, but missing it would halt everything and waste days. I’d advise new buyers to check the local tax rate and process beforehand to avoid confusion and wasted time like I experienced at first.
