Must the vehicle purchase tax be paid on the day of picking up the car?
2 Answers
Vehicle purchase tax must be paid within 60 days from the date of purchase. The tax can be paid on the day of picking up the car or at a later date. The payment method involves bringing the owner's identity proof, vehicle price proof, and vehicle qualification certificate to the local competent tax authority for tax declaration. As a property tax, the vehicle purchase tax is levied on specific purchased vehicles rather than all properties or consumer properties, making it a narrow-range special property tax. The calculation method for the tax is as follows: the tax payable equals the taxable price multiplied by the tax rate. The taxable price is the price excluding tax, and the tax rate is 10%.
As a long-time car owner, I recall from my last vehicle purchase experience that the purchase tax indeed needs to be paid before taking delivery. Generally, dealers require payment of the purchase tax on the day of vehicle pickup; otherwise, the paperwork cannot be processed. This is because the purchase tax receipt is a mandatory document for vehicle registration at the DMV. Without the tax receipt, the car cannot be registered, and you won't be able to drive it even if you take delivery. I recommend preparing the funds in advance—whether by transfer or card payment—to avoid delays on the day. The purchase tax is calculated as 10% of the invoice price, so make sure to double-check the invoice amount to avoid overpayment or underpayment. Once the tax is paid and you receive the receipt, the subsequent registration process will go smoothly. It's also wise to allow some buffer time in case of unexpected issues, such as bank delays.
