What are the new regulations for used car transactions in 2021?
2 Answers
Here is an introduction to the new regulations for used car transactions in 2021: 1. Required materials for transfer: For the transfer of a used car transaction, you need to prepare the vehicle license, vehicle registration certificate, a set of license plates (for vehicles undergoing plate return, provide the plate return and renewal certificate), import vehicle inspection report (required for imported vehicles), vehicle purchase tax certificate, ID cards of both the buyer and seller, household registration booklet, etc. For non-local residents, a temporary residence permit is also required, and the buyer's temporary residence permit must be valid for at least one year. 2. Transfer considerations: The used vehicle market implements a proxy system for vehicle transfers, where the transfer window does not directly handle transactions for consumers. If a transfer is needed, the vehicle must be brought to the market, and a used vehicle trading company will act as the proxy to complete the transfer process: evaluation, vehicle inspection, and ticket issuance. Additionally, during the transfer, both parties must sign the "Used Vehicle Sales Contract" supervised by the industrial and commercial department. The contract is made in triplicate, with one copy for each party and one retained by the industrial and commercial department. The vehicle transfer or relocation procedures can only be processed after the contract is filed with the industrial and commercial department. Once the evaluation report is ready, the transfer process can begin. The completed transfer certificate should be kept by the buyer, but it is recommended to retain a copy. 3. New tax policies: According to Announcement No. 17 of 2020 by the Ministry of Finance and the State Taxation Administration, from May 1, 2020, to December 31, 2023, taxpayers engaged in the used car trade who sell their purchased used cars will have the VAT rate reduced from 3% to 2% under the simplified method, and further reduced to 0.5%. There is indeed a new policy reducing the VAT rate to 0.5% for used car sales, but it has specific applicability. The policy stipulates that only taxpayers engaged in the used car trade who sell their purchased used cars can enjoy the simplified method with a reduced VAT rate of 0.5%. If a company sells its own used vehicles, it does not fall under the scope of Announcement No. 17 of 2020 and cannot apply the reduced 0.5% VAT rate policy.
Wow, the new 2021 used car trading regulations have a significant impact on us ordinary buyers. What I like most is the removal of the restriction on relocating non-local China V emission standard vehicles. In the past, I always worried about emission issues when buying an out-of-town used car, but now it's much easier. Additionally, the process has been simplified—the transfer procedures are less cumbersome, saving a lot of time and costs. The policy also promotes online trading platforms, where some apps can directly handle the formalities, avoiding the hassle of offline errands. Oh, and the new regulations have strengthened quality assurance requirements, such as requiring sellers to provide more detailed vehicle history records, reducing the risk of being scammed. I think these changes are great, making used car trading fairer and more transparent, and giving buyers more peace of mind. Recently, a friend of mine just bought a car under the new regulations, saving over a thousand yuan, and the process went very smoothly.
