In order to support the development of the new energy vehicle industry and promote automobile consumption, the following matters with respect to the continuation and optimization of vehicle purchase tax reduction and exemption policies for new energy vehicles are hereby announced as follows：

I. The new energy vehicles purchased between January 1, 2024 and December 31, 2025 are exempted from vehicle purchase tax, of which the tax exemption amount shall not exceed 30,000 yuan per new energy passenger vehicle; the new energy vehicles purchased between January 1, 2026 and December 31, 2027 are subject to a 50% reduction in vehicle purchase tax, of which the tax reduction amount shall not exceed 15,000 yuan per new energy passenger vehicle.

The date of purchase is determined in accordance with the date of issuance of a valid certificate such as a Unified Invoice for Motor Vehicles Sales or a Customs Duty Payment Certificate.

New energy vehicles enjoying the vehicle purchase tax reduction and exemption policies refer to battery electric vehicles, plug-in hybrid electric vehicles(including extended-range electric vehicles), and fuel cell vehicles that meet the technical requirements for new energy vehicles. The technical requirements for new energy vehicles are formulated jointly by the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration according to the technological progress of new energy vehicles, the development of relevant standards, and the changes in vehicle models.

New energy passenger vehicles refer to new energy vehicles that are designed, manufactured and technically used primarily for transporting passengers and their carry-on luggage, and/or temporary belongs, with a maximum of nine seats, including the driver’s seat.

II. Where the vendor sells new energy vehicles in “battery swapping model”, and the accounting of power batteries sales and the accounting of new energy vehicles without power batteries sales are conducted separately and the invoices are issued separately, the taxable value for vehicle purchase tax shall be the exclusive of tax price set out on the Unified Invoice for Motor Vehicle Sales acquired by the purchaser for the purchase of new energy vehicles without power batteries.

New energy vehicles with “battery swapping model” shall meet the technical standards and requirements related to battery swapping, and the new energy vehicle manufacturers shall be able to provide clients with battery swapping services by themselves  or entrust a third party to do so.

III. In order to strengthen and standardize the regulation of new energy vehicles that enjoy vehicle purchase tax reductions or exemptions, the Ministry of Industry and Information Technology and the State Taxation Administration issue the “Catalog of New Energy Vehicle Models Qualified for Vehicle Purchase Tax reductions or exemptions” (hereinafter referred to as “Catalog”). After the Catalog’s issuance, the purchase of new energy vehicles listed in the Catalog may enjoy the policy of vehicle purchase tax reductions or exemptions in accordance with the regulations.

For new energy vehicles that have been listed in the Catalog, new energy vehicle manufacturers and imported new energy vehicle dealers (hereinafter referred to as “automobile enterprises”) shall mark “Yes” (i.e. tax reductions or exemptions mark) in the field of “Whether it is qualified for vehicle purchase tax reductions or exemptions” when uploading the “Qualified Certificate of Completed Vehicle” or the “Vehicle Electronic Information Sheet” of imported motor vehicles (hereinafter referred to as “the electronic information of vehicles”). For new energy vehicles with the “battery swapping model” which have been listed in the Catalog, automobile enterprises should also mark “yes” in the field of “whether it is a new energy vehicle with the ’battery swapping model’ (i.e., battery swapping model mark)”. The Ministry of Industry and Information Technology will verify the tax exemptions or reductions mark and the battery swapping model mark in the electronic information of vehicles uploaded by the automobile enterprises, and transmit the verified information to the State Taxation Administration. The tax authorities shall handle the vehicle purchase tax reductions or exemptions procedures based on the two verified marks provided by the Ministry of Industry and Information Technology and the Unified Invoice for Motor Vehicle Sales (or other valid certificates).

IV. Automobile enterprises shall ensure that the electronic information of vehicles is consistent with the vehicle products, and vendors shall issue invoices truthfully. Cases where the provision of false information or data results in vehicle purchase tax leakage shall be dealt with in accordance with Tax Collection and Administration Law of the People’s Republic of China and its Implementing Regulations.

It is hereby announced.

Ministry of Finance, State Taxation Administration,

Ministry of Industry and Information Technology

June 19, 2023

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.