The great river news, da river client reporter
On 1 july, the law of the people's republic of china on vehicle acquisition tax (hereinafter referred to as the law on vehicle acquisition tax) was formally implemented and the provisional regulations of the people's republic of china on vehicle acquisition tax (hereinafter referred to as the provisional regulations) were repealed after more than 18 years. What changes, then, would the implementation of the vehicle acquisition tax act bring to the car purchaser?
The new deal's acquisition tax is very generous
"i bought a 150,000-dollar car and paid taxes today, 3,000 less than before." at henan's new hope chevrolet, mr. Wang enjoyed the first “welfare” of the new policy。
According to mr. Wang, after a discount on the car he purchased, the price eventually stated on the uniform invoice for the sale of motor vehicles was $us 149. 9 million and, if it had been prior to 1 july, the tax rate had been declared at the official instruction price of $us 1899 million, which was $168. 05; after 1 july, it was declared at the actual purchase price, resulting in savings of $3,000。
The vehicle acquisition tax act also eliminated the lowest tax rate. Mr. Lee, a sales consultant for zhengzhou, explained that, in general, in the vehicle acquisition tax system, different minimum tax rates were set for different models, and consumers were required to pay acquisition tax at the lowest tax rate when the transaction price was below the minimum tax price. Under the new method of calculating the acquisition tax, it would also be beneficial to completely abolish the minimum tax price and shift to an invoice price。
In order to better protect consumer interests, the vehicle acquisition tax act introduced a new tax refund clause. The staff member of zhengzhou city tax administration explained that, after the implementation of the new deal, if the vehicles purchased by the consumer were returned to the producing or selling enterprise, the consumer could apply for reimbursement of the vehicle acquisition tax, which was calculated on the basis of tax already paid x (10 per cent of the useful life)。
For example, the consumer purchased a $120,000 car and paid an acquisition tax of $10619 and refunded the amount of $10619 x (1-2 x 10 per cent) = $8495, if the vehicle had to be returned for some reason after two years of use。
The tax on paper cars is cancelled
Article 13 of the vehicle acquisition tax act, which provides for the application of electronic tax clearance certificates for registration, maximizes the ease with which taxpayers may be taxed, has advanced the “discharge” requirement. The new act provides for the complete elimination of the certificate of tax on the acquisition of paper-based vehicles effective 1 july 2019。
The registration of vehicles has been piloted in the country since 1 june with the full application of the electronic vehicle purchase tax clearance certificate. After the tax has been successfully paid by the taxpayer, when the traffic administration of the public security organ registers the vehicle, it is not necessary to submit to the transport administration of the public security organ a certificate of tax on the purchase of paper-based vehicles。
To this end, the zhengzhou city tax administration has begun to promote a taxed pos machine throughout the city, which journalists have seen in henan ji-tung motor sales services ltd., the same as the pos machine used to swipe cards. “with this smart pos machine in place, the taxpayer can pay a tax directly on the purchase of a car on the spot after the finance staff issues an invoice. Not only do they not have to keep the owner's data, but they do not have to be sent back to the tax administration.” heining, a staff member at 4s, stated that not only could taxes be paid on site, but that “in the event of an information error, it would be necessary to contact the tax administration to make a back-office modification”. The electronic information generated for tax clearance is transmitted directly to the dmv, and the owner will no longer need paper to prove it。
New energy cars will continue to be exempted by next year
Journalists found that the scope of the levy had also been adjusted to include vehicles subject to tax on the acquisition of vehicles, motorcycles with a exhaust of more than 150 ml, trailers and trams. In addition, urban orbital vehicles, such as subways, light rails, loaders, graders, excavators, bulldozers, and wheeled machinery, as well as cranes (chips), forklifts and electric motorcycles, are not taxable vehicles。
A recent joint bulletin by the ministry of finance and the directorate general of taxes on the continuation of the policy of preferential taxation on vehicle purchases, clearly states that from 1 january 2018 to 31 december 2020, vehicle acquisition taxes will remain free for the purchase of new energy vehicles。
