In order to standardize the administration of the levy & collection of vehicle and vessel tax and safeguard the legitimate rights and interests of taxpayers, in accordance with the "Law of the People's Republic of China on Vehicle and Vessel Tax" (hereinafter referred to as the Vehicle and Vessel Tax Law) and its implementation regulations, the issues relating to the administration of levy & collection of vehicle and vessel tax are hereby clarified as follows:
I. Identification of special working vehicles
Vehicles which are designed or with technical characteristics for special jobs and fitted with a special equipment or appliances shall be identified as special working vehicles, such as cranes, fire engines, concrete pump trucks, wreckers, overhead working trucks, water trucks, sweeper trucks, etc. A special-purpose vehicle which is primarily used for the carriage of persons or goods, such as an ambulance, does not belong to the special working vehicles.
II. Tax collection on passenger and goods dual-service trucks upon the verification of taxation authorities
A passenger and goods dual-service truck, also known as multi-purpose goods vehicle, refers to the goods vehicle which is mainly used for the carriage of goods in the design and structure. However, it also has fixed or folding seats behind the driver's seat and may carry more than 3 passengers. The vehicle and vessel tax of a passenger and goods dual-service truck shall be calculated and levied on the basis of the taxation unit and annual benchmark tax of the vehicle.
III. Calculation of the vehicle and vessel tax payable
If the curb weight, net tonnage, hull length and other taxation units involved in the "Vehicle and Vessel Tax Law" and its implementation regulations have a mantissa, the vehicle and vessel tax shall be calculated according to the actual figure. If the computed tax figure has more than two figures after the decimal, it can be round-off to two figures after the decimal.
The tax range of passenger vehicle shall be determined by the engine displacement stated on the vehicle registration certificate or the vehicle license issued by the vehicle registration department.
IV. Tax refund of the returned vehicles and vessels due to quality problem
In case vehicles and vessels whose taxes have been paid yet they need to be returned to manufacturers or distributors due to quality reasons, taxpayers may apply with the in-charge taxation authorities at the place of tax declarations for refunding the paid taxes during the period from the month of returned purchase to the end of the tax year. The month of returned purchase shall be the month when the date of returned purchase is indicated in the return purchase invoice.
V. The in-charge taxation authorities at the place of vehicle registration shall no more levy vehicle and vessel tax after the levy & payment of vehicle and vessel tax already done by withholding agents
If vehicle and vessel tax has already been collected and paid by withholding agents when taxpayers purchased the "traffic compulsory insurance", upon showing the "traffic compulsory insurance" policy on which is indicated the information of "taxes received", the in-charge taxation authorities at the place of vehicle registration shall not any more levy the vehicle and vessel tax of the tax year. As for the repetitive collection, the in-charge taxation authorities at the place of vehicle registration shall refund such taxes.
VI. Starting time of the collection and payment of fines for delaying payment of outstanding taxes by withholding agents
The amount of fines for delaying payment of outstanding taxes, which shall be collected and paid by withholding agents of vehicle and vessel tax, shall be calculated starting from the day following the deadline date for filing tax returns as regulated by the people's governments of provinces, autonomous regions and municipalities.
VII. Levy & collection of vehicle and vessel tax on domestic and foreign chartered vessels
In case domestic units and individuals who rent foreign vessels, the vehicle and vessel tax shall be exempted. Whereas domestic units and individuals who lease vessels abroad, they shall be subject to vehicle and vessel tax.
This Announcement shall come into force on September 1, 2013. The "Notice of the State Administration of Taxation on Several Issues Concerning the Administration of the Levy & Collection of Vehicle and Vessel Tax" (Guo Shui Fa [2008] No.48) shall be abolished at the same time.
The Announcement is hereby notified as above.
State Administration of Taxation
July 26, 2013