Announcement on the Exemption of Vehicle Purchase Tax from New-Energy Automobiles

 2018-05-20  53


  • Document NumberAnnouncement No. 172 [2017] of the Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology and the Ministry of Science and Technology
  • Area of Law Taxation
  • Level of Authority Departmental Regulatory Documents
  • Date issued12-26-2017
  • Effective Date01-01-2018
  • Status Effective
  • Issuing Authority Ministry of Finance State Administration of Taxation Ministry of Industry & Information Technology Ministry of Science & Technology

Announcement of the Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology and the Ministry of Science and Technology
(No. 172 [2017])
Announcement on the Exemption of Vehicle Purchase Tax from New-Energy Automobiles
For the purposes of implementing the spirit of the 19th National Congress of the Communist Party of China and further supporting the innovative development of new-energy automobiles, with the approval of the State Council, the issues on the exemption of vehicle purchase tax on new-energy automobiles are hereby announced as follows:
I. New-energy automobiles purchased shall be exempt from vehicle purchase tax between January 1, 2018 and December 31, 2020.
II. The new-energy automobiles exempted from vehicle purchase tax shall be managed through the issuance of the Catalogue of Models of New-Energy Automobiles Exempted from Vehicle Purchase Tax (hereinafter referred to as the “Catalogue”). For the new-energy automobiles that have been listed in the Catalogue before December 31, 2017, the policies regarding the exemption of vehicle purchase tax on new-energy automobiles shall continue to be valid.
III. As of January 1, 2018, new-energy automobiles to be listed in the Catalogue shall:
(1) be pure electric vehicles, plug-in hybrid (including extended-range) vehicles and fuel cell vehicles permitted to be sold within the territory of China;
(2) satisfy the Technical Requirements for New Energy Automobile Products (Annex 1);
(3) have passed the special inspection for new-energy automobile products and have reached the special inspection standards for new-energy automobile products (Annex 2); and
(4) satisfy the relevant requirements (Annex 3) in product quality guarantee, product consistency, after-sale services, safety monitoring, and recycling and utilization of power batteries, etc., if they are imported by the manufacturers of new-energy automobiles or dealers (hereinafter referred to as “enterprises”)
The Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology and the Ministry of Science and Technology shall, in light of the development of the standards system of new-energy automobiles, technical progress and changes in the automobile models, etc., adjust the conditions for new-energy automobiles to be listed in the Catalogue.
IV. An enterprise shall submit an Application Report for the Catalogue to the Ministry of Industry and Information Technology (Annex 4) and be responsible for the authenticity of the application materials and the product quality. The Ministry of Industry and Information Technology shall, in conjunction with the State Administration of Taxation, organize technical experts to conduct examination, and include the automobile models that have passed the examination in the Catalogue, and the Ministry of Industry and Information Technology and the State Administration of Taxation shall announce the Catalogue.
V. For a new-energy automobile listed in the Catalogue, an enterprise shall, when uploading the ex-factory conformity certificate for the whole motor vehicles, indicate “Yes” (i.e., tax exemption mark) in the field of “Whether listed in the Catalogue of Models of New-Energy Automobiles Exempted from Vehicle Purchase Tax.” The Ministry of Industry and Information Technology shall examine the tax exemption marks in the ex-factory conformity certificate for the whole motor vehicles uploaded by enterprises, and transfer the information that has passed the examination to the State Administration of Taxation. The tax authorities shall undergo the tax exemption formalities on the basis of the tax-exemption marks and uniform sales invoices (or valid certificates) of motor vehicles that have been examined by the Ministry of Industry and Information Technology.
VI. An enterprise that has had any of its automobile models listed in the Catalogue by submitting application materials inconsistent with the products, failing to satisfy the requirements for the indicators of product performance, or providing other false information and any other fraudulent means shall be disqualified from applying for the exemption from vehicle purchase tax and shall be punished according to the relevant laws and regulations. Where there is any hidden safety risk or safety accident in the use of a product sold, the punishment measures such as ceasing production, ordering immediate correction and suspension or cancellation of the qualification for exemption from vehicle purchase tax shall be taken according to the law in light of the nature and seriousness of the accident.
VII. Where a functionary conducting examination and verification of the application reports for the Catalogue abuses his powers, neglects his duties, practices favoritism, makes falsification or has other acts in violation of any law or regulation when fulfilling the functions of conducting examination for tax exemption, he shall be held accountable according to the Civil Servant Law, the Administrative Supervision Law and other relevant provisions issued by the state; and shall be transferred to the judicial authority for punishment if any crime is found.
Annexes: 1. Technical Requirements for New Energy Automobile Products
2. Catalogue of Special Inspection Standards for New-Energy Automobile Products
3. Requirements for New-energy Automobile Enterprises
4. Application Report for the Catalogue of Models of New-Energy Automobiles Exempted from Vehicle Purchase Tax
Ministry of Finance
State Administration of Taxation
Ministry of Industry and Information Technology
Ministry of Science and Technology
December 26, 2017