China News Service, April 9th, according to the Ministry of Finance website, the Ministry of Finance and the State Administration of Taxation jointly released the "Announcement on Value-Added Tax Policies on the Distribution of Used Cars" (hereinafter referred to as "Announcement"). According to the "Announcement", from May 1, 2020 to December 31, 2023, taxpayers engaged in the distribution of second-hand cars will sell their purchased second-hand cars, and the value-added tax will be levied at a rate of 3% and reduced by 2%. The tax was changed to a 0.5% VAT reduction.
Screenshot of the Ministry of Finance website
The “second-hand cars” mentioned in the “Announcement” refer to the vehicles that have been transacted and transferred their ownership before completing the registration procedures and reaching the national mandatory scrapping standard. The specific scope is implemented in accordance with the second-hand car circulation management measures promulgated by the State Council's Commerce Department.