Purchase tax is not required for buying a used car. According to the Vehicle Purchase Tax Law of the People's Republic of China, vehicle purchase tax is levied once. That is to say, after a new car is sold for the first time and the purchase tax is paid, the subsequent transfer or sale, including when it is sold as a used car, does not need to pay purchase tax again.
However, if a tax-free or tax-reduced vehicle is no longer within the scope of tax exemption or tax reduction due to transfer, change of use, etc., the taxpayer shall pay the vehicle purchase tax before applying for vehicle transfer registration or change of registration. The taxable price is based on the taxable price determined when the tax-free or tax-reduced vehicle first applies for tax declaration, and 10% is deducted every full year.
When buying a used car, although there is no need to pay purchase tax, the buyer still needs to pay other related fees such as vehicle transfer fees and license fees.
