According to the Ministry of Finance Announcement of the State Administration of Taxation2020Annual regulation17In order to promote automobile consumption, since2020years5month1sunrise2023years12month31The taxpayer engaged in the second-hand automobile sales, according to the original simple method3%The tax rate is reduced2%The imposition of value-added tax shall be reduced0.5%Impose value added tax.

The used cars mentioned in this announcement refer to the vehicles whose ownership is transferred and traded from the completion of registration to the compulsory scrapping standards of the State. The specific scope shall be implemented in accordance with the administrative measures for circulation of used cars issued by the competent Commerce Department of The State Council.

(1) Calculation of sales volume

sales＝Sales including tax/(1+0.5%)

(2) Invoice issuance

When selling second-hand automobiles, an enterprise selling second-hand automobiles shall issue to the buyer a uniform invoice prepared under the supervision of the tax authority. Since the unified invoice for the sale of second-hand automobiles is not an effective VAT deduction voucher, in order to protect the input deduction rights and interests of the purchasers of taxpayers, the announcement clearly states that taxpayers engaged in the second-hand automobile distribution business shall issue the unified invoice for the sale of second-hand automobiles in addition to the provisions, and the taxpayer shall issue the special VAT invoice for the purchaser0.5%VAT special invoice.

(3) It should be noted that the issuance of special VAT invoice depends on the object of purchase. According to the relevant provisions of the Interim Regulations of the People's Republic of China on Value Added Tax, if the buyer is an individual consumer, the taxpayer engaged in the second-hand car distribution business shall not issue special VAT invoice for it.

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