Up to 30,000 yuan! In 2024, the purchase tax will be exempted for buying new energy vehicles

China-Singapore Jingwei, December 30 (Peng Linli) "You have to hurry, you will have to pay purchase tax when you buy new energy vehicles in 2024." Recently, a salesperson of a new energy vehicle "ran to tell each other" on social platforms.

On December 11, 2023, the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Administration of Taxation jointly issued the Announcement on Adjusting the Technical Requirements for New Energy Vehicle Products Subject to Vehicle Purchase Tax Reduction and Exemption (hereinafter referred to as the "Latest Announcement in December"), which updated the technical requirements for new energy vehicle products enjoying vehicle purchase tax reduction, improved vehicle energy consumption, driving mileage and other indicators, and clarified the relevant requirements for battery swap mode models.

China has been exempting NEVs from vehicle purchase tax since September 2014 and extended it three times in 2017, 2021 and 2022, with the current policy expiring at the end of 2023.

In 2024, will the purchase of new energy vehicles continue to be exempt from purchase tax, and what are the requirements for the price and technical standards of the models?

"If the opening ticket price exceeds 339,000 yuan, you need to pay purchase tax"

The Announcement on Extending and Optimizing the Vehicle Purchase Tax Reduction and Exemption Policy for New Energy Vehicles issued in June 2023 clearly states that the vehicle purchase tax reduction and exemption policy for new energy vehicles will continue until December 31, 2027. The next four years will be divided into two time periods: 2024-2025, the purchase tax will be exempted, and 2026-2027, the purchase tax will be halved.

The specific regulations for the extension of the reduction and exemption policy are that new energy vehicles with a purchase date between January 1, 2024 and December 31, 2025 will be exempted from vehicle purchase tax, of which the tax exemption for each new energy passenger vehicle shall not exceed 30,000 yuan. The vehicle purchase tax will be halved for new energy vehicles purchased between January 1, 2026 and December 31, 2027, of which the tax reduction for each new energy passenger vehicle shall not exceed 15,000 yuan.

When answering reporters' questions on the continuation and optimization of the vehicle purchase tax reduction and exemption policy for new energy vehicles, the relevant persons in charge of the Department of Taxation of the Ministry of Finance and the Department of Goods and Services Tax of the State Administration of Taxation took passenger cars that consumers often come into contact with as an example to analyze the policy in detail.

On February 5, 2024, Li purchased a new energy passenger car that meets the required tax reduction and exemption standards. For new energy passenger vehicles with a sales price of 300,000 yuan (excluding VAT, the same below), the vehicle purchase tax rate is 10%, and the tax payable is 30,000 yuan (300,000 yuan× 10%). According to the tax exemption policy, the tax exemption amount is 30,000 yuan, which does not exceed the tax exemption limit of 30,000 yuan, and Li does not need to pay vehicle purchase tax.

The sales price is 500,000 yuan, the tax payable is 50,000 yuan (500,000 yuan×10%), the tax exemption is 50,000 yuan according to the tax exemption policy, and the tax exemption limit is 20,000 yuan, and Li can enjoy the tax exemption of 30,000 yuan, and he needs to pay 20,000 yuan of vehicle purchase tax.

According to the latest version of the Vehicle Acquisition Tax Law, the automobile purchase tax is levied at 10% of the price of the car, and the VAT rate is 13%, that is, the amount of tax paid = the price of the vehicle / (1+13%)*10%. Judging from the calculation formula, it means that from 2024 to 2025, new energy vehicles with a ticket price of more than 339,000 yuan will have to pay purchase tax.

In terms of specific models, taking Tesla Model Y as an example, the rear-wheel drive version and the long-range all-wheel drive version are both priced below 339,000 yuan, and they can enjoy purchase tax exemption. However, the high-performance all-wheel drive version exceeds this price threshold, and the current price is 363,900 yuan, and the vehicle purchase tax of 2,200 yuan in addition to 30,000 yuan must be paid.

"A00 class passenger cars will be affected"

In addition to the price change, there are also newer standards in technology.

According to the technological progress of new energy vehicles, the development of the standard system and the change of models, the technical requirements for enjoying the vehicle purchase tax reduction and exemption policy will be optimized. The latest announcement in December clearly stipulates that from January 1, 2024, models applying for inclusion in the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax" must meet the technical requirements of new energy vehicle products.

Taking pure electric vehicles as an example, the maximum speed in 30 minutes is not less than 100km/h, the range is not less than 200km, the battery mass energy density is not less than 125Wh/kg, and the power consumption per 100 kilometers should meet certain requirements according to the curb weight.

Source: First Division of Equipment Industry, Ministry of Industry and Information Technology

According to the Ministry of Industry and Information Technology, more than 90% of models meet the above criteria, meaning that less than 10% of models will be affected in the future. At the same time, the Ministry of Industry and Information Technology has reserved a five-month transition period: models that do not meet the technical requirements can still enjoy the purchase tax reduction policy if they are purchased before May 31, 2024, and from June 1, 2024, models that do not meet the technical requirements will need to pay a certain purchase tax.

"The biggest impact of the improvement of technical standards is on A00 class passenger cars. At present, the driving range of pure electric passenger cars is less than 200km, mainly A00 class vehicles, accounting for 39% of A00 class electric vehicle sales in 2023, accounting for a relatively high proportion. Cui Dongshu, secretary general of the passenger association, analyzed in an interview with China-Singapore Jingwei.

Zhongxin Jingwei observed that taking the Wuling Binguo 230km light model as an example, the price of the model is 59,800 yuan, although the battery life is up to standard, but the battery mass energy density is 121Wh/kg, which fails to reach the specified 125Wh/kg. In addition, among the 16 models of Chery QQ ice cream on sale, only the 2023 205km sundae and sundae + meet the requirements, and the remaining 14 models all have a driving range of less than 200km, and the power consumption of 100km cannot meet the requirements.

Cui Dongshu pointed out that after the policy threshold changes, most of the micro electric vehicles need to readjust the range layout, and the existing entry layout needs to be upgraded.

Cinda Securities believes that the driving range of pure electric passenger vehicles is not less than 200km, which is more than the previous 100km, and the proven reserves of lithium carbonate have increased, and the price has continued to fall, and the increase in the threshold is expected to continue to promote the improvement of electric vehicle indicators.

"Separation of vehicle and electricity" may be exempt from purchase tax

"The battery swap mode has certain advantages in reducing the cost of car purchase, eliminating range anxiety, and improving the safety level. The Ministry of Industry and Information Technology introduced.

According to the latest announcement in December, the battery swap mode models need to meet the standards such as GB/T 40032 "Safety Requirements for Battery Swapping of Electric Vehicles", and also clarified the vehicle purchase tax taxable price of new energy vehicles sold in the "battery swap mode".

According to the Ministry of Industry and Information Technology, in order to accurately distinguish the taxable price of new energy vehicles without power batteries, sellers are required to separately calculate the sales of new energy vehicles without power batteries and issue separate invoices for power batteries when selling. If the above requirements are met, the taxable value of the vehicle acquisition tax shall be based on the tax-exclusive price stated in the uniform invoice for the sale of motor vehicles obtained by the car buyer when purchasing the new energy vehicle without power battery.

Taking NIO as an example, some models can meet the purchase tax exemption criteria if they choose to lease batteries.

On December 27, when Zhongxin Jingwei consulted NIO sales as a consumer, the other party said, "All models of NIO have supported the battery swap mode for 18 years. The purchase tax exemption in 2024 is based on the opening fare. For example, ET5, the purchase price of the vehicle is more than 300,000 yuan, plus the optional 340,000 yuan. If you choose to rent electricity, you can directly deduct 70,000 yuan, and if the vehicle is less than 340,000 yuan, you can be tax-free. However, you need to pay a separate battery rental fee of 1,060 yuan per month to rent electricity. ”

Zhang Hong, a member of the Expert Committee of the China Automobile Dealers Association, told Zhongxin Jingwei that the separation of vehicle and electricity is a feature of battery swapping technology, which not only has the advantages of battery safety, but also provides multi-faceted solutions for battery recycling and cascade utilization. At the same time, it will also reduce the cost of car purchase for consumers. At present, the only weakness lies in the construction and operation cost of battery swap stations.

"The purchase tax exemption specifically proposes support for battery swap equipment and models, which will undoubtedly play a positive role in promoting the development of battery swap modes and equipment. Zhang Hong said.

For a series of policy adjustments, Zhang Hong pointed out that the previous subsidies and tax exemptions are the general support for the entire new energy vehicles, and encourage all car companies to jointly develop new energy vehicles, rain and dew evenly. At present, new energy vehicles have accounted for more than 30% of the country's total automobile production and sales, and China's new energy vehicle industry no longer needs simple quantitative development, but more needs high-quality development.

(Sino-Singapore Jingwei APP)

(The views in the article are for reference only and do not constitute investment advice, investment is risky, and you need to be cautious when entering the market.) )

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Editor in charge: Wei Wei and Li Zhongyuan