Circular of the State Administration of Taxation about Relevant Issues on Strengthening the Levy Administration of Motor Vehicle Taxes

Circular of the State Administration of Taxation about Relevant Issues on Strengthening the Levy Administration of Motor Vehicle Taxes

Guo Shui Fa [2005] No. 79

May 11, 2005

The bureaus of State taxation and the bureaus of local taxation of all provinces, autonomous regions, municipalities directly under the Central Government, and cities directly under state planning, Yangzhou Institute of Continuing Tax Education, and all entities within the State Administration of Taxation:

At present, the taxes to be levied on motor vehicles in the links of manufacture, sale, purchase and use mainly include value-added tax, consumption tax, vehicle purchase tax, vehicle and vessel usage tax, vehicle and vessel license and plate tax, etc. Among these taxes, the value-added tax and consumption tax paid by vehicle manufacturing enterprises, the value-added tax paid by vehicle distribution enterprises, and the vehicle purchase tax paid by vehicle users shall be levied by the bureaus of State taxation separately in the links of manufacture, sale and purchase. While the vehicle and vessel usage tax and the vehicle and vessel license and plate tax, which are paid by vehicle users shall be levied by the bureaus of local taxation in the link of use. Since the taxes on motor vehicles in different links are levied independently by different departments, and there lacks coordination and cooperation between different departments in different links, is not the share of vehicle tax-involving information, and exist tax levy administration flaws in all links to different extents, and as a result, tax revenues are lost severely. Considering that the object of each abovementioned tax in each link is motor vehicle, and there is already a cooperation relationship between the taxation organ and the vehicle administration department of the public security organ, and moreover, there are evidential documents on the taxes levied in each link, the State Administration of Taxation decides to, for the purpose of strengthening the levy administration of motor vehicle taxes, further take the measures of "controlling taxes with documents, sharing information, and conducting coordinated administration", that is, the measures of "one-package" administration, on the relevant taxes on motor vehicles in the links of manufacture, sale, purchase and use on the basis of the present division of duties and levying requirements, so as to block the flaws in tax losses, and improve the efficiency in levying various taxes.

I. The Idea of "One-Package" Administration for Vehicle Taxes
We shall strengthen the information communication on levying motor vehicle taxes in the links of manufacture, sale, purchase and use, and realize the coordinative and cooperative administration in each link. We shall, by regarding the levy of vehicle purchase tax as the control link, firmly grasp the key of "levying vehicle purchase tax before granting the plate", cooperate closely with the vehicle administration department of the public security organ, verify and certify the "uniform invoices on the sale of motor vehicles" (hereinafter referred to as uniform invoices) in the link of levying vehicle purchase tax, record relevant information after levying the vehicle purchase tax, and transmit the uniform invoices and tax levy information forward to the link of levy administration of value-added tax and consumption tax, so that the bureau of State taxation may use them for tax source administration, tax payment evaluation, and daily inspection of vehicle manufacture and distribution enterprises. And the checking departments may use such uniform invoices to pertinently make taxation checks on the manufacturing enterprises or distribution enterprises, and to strengthen the administration of value-added taxes and consumption taxes. The uniform invoices and tax levy information shall also be transmitted backward to the link of levy administration of the vehicle and vessel usage tax and the vehicle and vessel license and plate tax, so that the bureau of local taxation may use them for administration of tax sources, and make the levy administration of motor vehicle taxes form an organic entirety.
The taxation departments at all levels shall make full use of the existing information resources and administrative means to earnestly strengthen the administration of tax sources by artificially collecting relevant information, making use of floppy disks and network to transmit information, and by comparing artificial information with computer information on motor vehicle taxes, so as to do a good job in daily inspections and tax payment evaluation, and to ensure the implementation of "one-package" administration measures for vehicle taxes.

II. Administration of Value-Added Taxes and Consumption Taxes in the Links of Manufacture and Distribution
The special VAT invoices issued between motor vehicle manufacturing enterprises and vehicle distribution enterprises, and the uniform invoices issued to vehicle users are the main evidential documents on the levy of value-added tax, consumption tax and vehicle purchase tax. The taxation organs at all level shall take effective measures to strengthen the administration of special VAT invoices and uniform invoices, and shall make use of the relevant information indicated on invoices as well as the manufacturing enterprises' ex-factory price, the distribution enterprises' sales price, and the minimum taxable price for vehicle purchase tax (hereinafter referred to as the minimum taxable price) to monitor the taxpayers' sales amount.
　　......