Advice on Purchasing Motor Vehicles Before First Registration

Advice on Purchasing
Motor Vehicles before First Registration

What is "published retail price"?

According to the Motor Vehicles (First Registration Tax) Ordinance, Cap 330 (the Ordinance), motor vehicles first registered in Hong Kong are subject to the First Registration Tax (FRT). A registered motor vehicle distributor shall, before selling a motor vehicle for use in Hong Kong, obtain the "published retail price (PRP)" approved by the Customs and Excise Department (C&ED) for calculation of the FRT payable.

Before Purchasing a Motor Vehicle

  • A registered motor vehicle distributor shall, before selling a motor vehicle for use in Hong Kong, publish in writing the "PRP list" of the motor vehicle as required under the Ordinance so as to give the buyer access to the particulars and "PRP" of the motor vehicle.
  • Enquiries on the "PRP" can be made through the "Motor Vehicles First Registration Tax System" via the Customs website (https://eservices.customs.gov.hk/FRT) or the mobile application "HK Car Tax". Buyers may also approach the Hong Kong Licensing Office of the Transport Department for the relevant information.
  • It is an offence if a registered motor vehicle distributor fails to publish the "PRP" of a motor vehicle offered for sale as required.

Before Signing the Sales and Purchase Agreement

  • Check clearly the particulars, the retail price and the FRT payable of the motor vehicle stated in the sales and purchase agreement.
  • The particulars and the retail price of the motor vehicle should tally with those stated in the "PRP List".
  • Unless otherwise authorised, any person who sells a motor vehicle at a price higher than its "PRP" commits an offence.

Applying for First Registration

  • Check the information filled in the application form for "Application for Registration and Licensing of a Vehicle" (TD22) to ensure that the particulars and retail price of the motor vehicle are consistent with those stated in the "PRP List" and the sales and purchase agreement.
  • It is an offence if the seller or buyer makes any statement or provides any information on TD22 which is false or imprecise.

After Purchasing a Motor Vehicle

For any accessory fitted to the vehicle and/or taxable warranty obtained for the vehicle within 6 months after its first registration, it is an offence if a registered vehicle owner and/or a registered motor vehicle distributor fails to submit a duly completed and signed application form "Declaration of Fitting of Accessories to and/or Obtaining of Taxable Warranties for a Registered Motor Vehicle within 6 months after First Registration" (TD469) to the Transport Department within 5 working days after the fitting of the accessory or entering into the contract for the taxable warranty.

Reports

Should there be any suspected irregularities in the sales process, please report them to the C&ED at 2545 6182.