What is Vehicle and Vessel Usage Tax?

[DiGabrielle]

The so-called Vehicle and Vessel Usage Tax refers to a type of tax that owners or managers of vehicles and vessels within the territory of the People's Republic of China are required to pay according to the Vehicle and Vessel Tax Law of the People's Republic of China. Starting from July 1, 2007, vehicle owners are required to pay this tax when purchasing compulsory traffic insurance. Relevant information about the vehicle purchase tax is as follows: 1. Introduction: The vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within the country, and it evolved from the vehicle purchase surcharge. 2. Tax payment location: For purchasing taxable vehicles, the tax should be declared and paid to the competent national tax authority in the vehicle registration location; for purchasing taxable vehicles that do not require registration procedures, the tax should be declared and paid to the competent national tax authority in the taxpayer's location.