What happens if the vehicle and vessel tax is overdue?
3 Answers
Handling methods for overdue payment of vehicle and vessel tax: From the date of tax arrears, the vehicle owner is required to pay a daily late fee of 0.05% of the overdue tax amount. The calculation formula is: Late fee payable = Vehicle and vessel tax payable × 0.05% × Number of overdue days. Below are the relevant details: 1. Definition of vehicle and vessel tax: The so-called vehicle and vessel tax refers to a tax that owners or managers of vehicles and vessels within the territory of the People's Republic of China are required to pay in accordance with the Vehicle and Vessel Tax Law of the People's Republic of China. Starting from July 1, 2007, vehicle owners need to pay the vehicle and vessel tax when purchasing compulsory traffic insurance. 2. The following vehicles are subject to a 50% reduction in vehicle and vessel tax: (1) Passenger vehicles with a displacement of 1.6 liters or less (including 1.6 liters) that use gasoline or diesel (including non-plug-in hybrid passenger vehicles and dual-fuel passenger vehicles); (2) Light and heavy commercial vehicles that use natural gas, gasoline, or diesel (including non-plug-in hybrid, dual-fuel, and bi-fuel light and heavy commercial vehicles) as well as light and heavy commercial vehicles that meet the standards for using gasoline or diesel. 3. New energy vehicles and vessels are exempt from vehicle and vessel tax: (1) New energy vehicle models that meet the standards, such as pure electric commercial vehicles, plug-in (including range-extended) hybrid vehicles, and fuel cell commercial vehicles, are exempt from vehicle and vessel tax; (2) Vessels with main propulsion power devices that are pure natural gas engines and meet the standards are exempt from vehicle and vessel tax (engines that use a small amount of diesel for ignition and where the ignition fuel's heat value does not exceed 5% of the total fuel heat value are considered pure natural gas engines).
I bought a car last year and forgot to pay the vehicle and vessel tax shortly after driving it. I was overdue for a full three months. The notice from the tax office gave me a shock—not only did I have to pay the original tax, but I was also charged a hefty late fee, which ended up costing me nearly half as much again. What’s even more annoying was the annual inspection. The inspection station checked the tax receipt and said I couldn’t pass without clearing the payment, so my car had to sit idle, leaving me unable to go to work for over a week and even losing wages. Looking back now, being overdue not only costs money but also causes delays, and the police could issue fines and deduct points if they check the car. So now I’ve set up a phone reminder to automatically transfer the tax payment every year when it’s due. Never slack off, or you’ll bring trouble upon yourself.
As someone who frequently tinkers with vehicles, I understand the serious consequences of overdue vehicle and vessel tax. From the first day of delay, the tax bureau imposes a late fee of 0.05% per day. The longer you delay, the more you'll have to pay, sometimes even exceeding the original tax amount. Additionally, annual inspections always check tax receipts. If unpaid, the inspection station will directly refuse service, leaving your car stuck there. If caught by traffic police on the road, penalties range from fines and points deduction to vehicle towing and license plate suspension. It also complicates car insurance renewal, as insurers require all taxes to be paid before coverage takes effect. Paying taxes on time ensures peace of mind and safety—never take it lightly.
