Tax burden of second-hand car dealerships dropped

Sales of used cars are reduced by 0.5% VAT

Reporter Dong Bijuan reported: The Ministry of Finance and the State Administration of Taxation recently issued an announcement clarifying that from May 1, 2020 to December 31, 2023, taxpayers engaged in the distribution of used cars sell their purchased used cars. The simplified method is to levy a value-added tax at a rate of 3% and a value-added tax of 2%, instead of 0.5%.

The second-hand cars mentioned in the announcement refer to the vehicles that have been transacted and transferred 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 regulations issued by the State Council's competent commercial department.

It is understood that the second-hand car industry is facing many individual customers, and it is difficult to obtain a special VAT invoice for deduction. In response to this real problem, in order to reduce the tax burden of the industry, a simple VAT collection policy has been introduced for second-hand car dealers selling second-hand cars. The 3% collection rate is reduced by 2%.

Sun Guangqi, Director of the Department of Economic Construction of the Ministry of Finance, said: "Considering that second-hand cars can meet the consumer demand of different cities, the consumer market contains huge potential. To stimulate automobile consumption, promote the transformation and upgrading of the automobile industry, and further increase policy support, While reducing the burden and simplifying operations, from May 1 this year to the end of 2023, the sales of used cars by second-hand car dealers will be reduced by 0.5% of the sales tax. According to this regulation, the tax reduction of second-hand car dealers will be reduced To 75%. "

According to reports, with the continuous growth of China's car ownership and the rapid development of second-hand cars, the country's second-hand car transactions in 2019 were 14.923 million units, an increase of 8% year-on-year, and the transaction volume was nearly trillion yuan. However, due to various factors, the development of China's second-hand car market is still relatively lagging. Compared with developed countries, China's second-hand car transaction volume accounts for a relatively low proportion of ownership, accounting for about 1/3 of new car sales. . Based on this calculation, China's second-hand car transaction volume should be close to 40 million units in theory, with huge room for development.

Dong Bijuan