Do you know about the purchase tax policy of new energy vehicles in China?New energy vehicles refer to vehicles that use unconventional vehicle fuels as a power source, integrate advanced technologies in vehicle power control and drive, and form advanced technical principles, new technologies, and new structures. New energy vehicles mainly include pure electric vehicles, extended-range electric vehicles, hybrid vehicles, and fuel cell electric vehicles. In order to support the development of the new energy vehicle industry and promote automobile consumption, those who purchase new energy vehicles that meet the conditions can not only enjoy vehicle purchase tax exemptions, but also “old for new” subsidy policies.
1. Vehicle purchase tax benefits. The “Announcement of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology on the Continuation and Optimization of the Vehicle Purchase Tax Exemption Policy for New Energy Vehicles” (Announcement No. 10 of the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology in 2023) stipulates that new energy vehicles purchased between January 1, 2024 and December 31, 2025 are exempt from vehicle purchase tax. Among them, the tax exemption for each new energy passenger car shall not exceed 30,000 yuan; the vehicle purchase tax shall be halved for new energy vehicles purchased between January 1, 2026 and December 31, 2027. Among them, the tax reduction for each new energy passenger car shall not exceed 15,000 yuan. New energy vehicles that enjoy the vehicle purchase tax exemption policy refer to pure electric vehicles, plug-in hybrid vehicles (including extended-range) vehicles, and fuel cell vehicles that meet the technical requirements of new energy vehicle products. New energy passenger vehicles refer to new energy vehicles that are mainly used to carry passengers and their carry-on luggage and (or) temporary items in terms of design, manufacturing and technical characteristics, with a maximum of 9 seats including the driver’s seat. Note: 1. The purchase date is determined according to the issuance date of valid certificates such as the unified invoice for motor vehicle sales or the special payment book for customs duties. 2. When the seller sells new energy vehicles in the “battery replacement mode”, if the new energy vehicles without power batteries and power batteries are calculated separately and invoiced separately, the tax-free price stated on the unified invoice for motor vehicle sales obtained by the buyer when purchasing new energy vehicles without power batteries shall be used as the taxable price for vehicle purchase tax.
2. Vehicle and vessel tax concessions. According to the Notice of the Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology, and the Ministry of Transport on Preferential Policies for Energy-saving and New Energy Vehicles and Vessels to Enjoy Vehicle and Vessel Tax (Finance and Taxation [2018] No. 74), energy-saving vehicles shall be subject to a 50% reduction in vehicle and vessel tax, while new energy vehicles and vessels shall be exempted from vehicle and vessel tax. At the same time, it is clarified that energy-saving and new energy vehicles that meet the standards shall be announced by the Ministry of Industry and Information Technology and the State Administration of Taxation from time to time in the “Catalogue of Energy-saving and New Energy Vehicle Models Enjoying Vehicle and Vessel Tax Reduction and Exemption” (hereinafter referred to as the “Catalogue”). The Announcement of the Ministry of Industry and Information Technology of the People’s Republic of China, the Ministry of Finance, and the State Administration of Taxation on Adjusting the Technical Requirements for Energy-saving and New Energy Vehicle Products Enjoying Vehicle and Vessel Tax Preferential Policies (Announcement No. 10 of the Ministry of Industry and Information Technology of the People’s Republic of China, the Ministry of Finance, and the State Administration of Taxation in 2024) clarifies that the technical requirements of new energy-saving and new energy vehicle models that apply for preferential policies for vehicle and vessel tax shall be implemented in accordance with the provisions of the announcement, and those that meet the conditions shall be included in the new “Catalogue”. After the new “Catalog” is announced, the models in the original “Catalog” that meet the technical requirements of this announcement will be automatically transferred to the new “Catalog”. Models that do not meet the technical requirements of this announcement should complete rectification before July 1, 2024. Those that meet the requirements can apply to be included in the new “Catalog”.
3. Subsidies will be given for “trading old for new” for new energy passenger vehicles. According to the “Notice of the Ministry of Commerce and Seven Other Departments on Further Improving the Work Related to Automobile Trade-in” (Shangxiaowu Letter [2024] No. 392) and the “Notice of the Ministry of Commerce, the Ministry of Finance and Seven Other Departments on Issuing the Implementation Rules of Automobile Trade-in Subsidy” (Shangxiaowu Letter [2024] No. 75), individual consumers who scrap fuel passenger cars with National III or lower emission standards or new energy passenger cars registered before April 30, 2018 between April 24, 2024 and December 31, 2024, and purchase new energy passenger cars included in the “Catalogue of New Energy Vehicle Models with Vehicle Purchase Tax Reduction and Exemption” of the Ministry of Industry and Information Technology or fuel passenger cars with a displacement of 2.0 liters or less, will adjust the subsidy standards as follows: For scrapping the above two types of old cars and purchasing new energy passenger cars, a subsidy of 20,000 yuan will be given; for scrapping fuel passenger cars with National III or lower emission standards and purchasing fuel passenger cars with a displacement of 2.0 liters or less, a subsidy of 15,000 yuan will be given.
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