Tax Issues

[lmcmanus]

If I buy a new motorcycle in a different province from the one I want to get a plate, will I have taxe issues? There are no local dealers for the bike I want. If I buy from the closest dealer they are in Jiangsu and I want to get a plate in Shangqiu, Henan. I know I need the statement that the vat has been paid, but will the different province cause a problem. Would I be better of to go twice as far to buy in Henan?

[Lao Jia Hou]

Unfortunately, there is never a straightforward answer in China.

From a purely technical, legal perspective ... if you purchase a bike in one province, you will pay that province's tax IF you register it in that original province. If you then take the bike to another province for a second registration, you will then pay that 2nd province's tax, as well. That is how it is supposed to work. Beijing doesn't seem to like bikes coming from other provinces for initial registrations, but it can be done if you ask in the right way, at the right time, with the right person.

HOWEVER ... This Is China ... and there seem to be far more exceptions than actual applications of the "rules." I have encountered both situations in Beijing with bikes coming in, and bikes going out. Also, I think several MCM members have already purchased new bikes in one province, but done the initial registration in another province.

The federal VAT is embedded in the sales price, and the provincial tax (it is 10% in Beijing) is applied to the net price (selling price minus the embedded VAT), presumably so that you are not taxed on tax.

In your situation, it will be a question of whether Henan will accept a bike delivered in Jiangsu. The only way you will know is to call the authorities in Henan, and ask - and keep your fingers crossed that you receive the correct information. I think what will be key is who, how, and when the infamous fapiao is issued. Alternately, you can pop into a Henan bike dealer and ask them what they do.

Let us know what happens.

[lightend]

I bought a bike near hangzhu and rode it to Anhui province (small town) I then registered it for plates, the police man sent me to a yamaha dealer to pay 60-70rmb tax, then came back and it was all fine..
I had a very attractive local with me which probably helped some what.