Are Vehicle Decoration Fees Included in the Vehicle Purchase Tax?
2 Answers
Decoration fees are not part of the taxable price for the vehicle purchase tax and do not require payment of the vehicle purchase tax. The vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within the country, evolving from the vehicle purchase surcharge. On December 29, 2018, the 7th Session of the 13th National People's Congress Standing Committee passed the "Vehicle Purchase Tax Law of the People's Republic of China," which came into effect on July 1, 2019. The "Interim Regulations on Vehicle Purchase Tax of the People's Republic of China" promulgated by the State Council on October 22, 2000, was simultaneously repealed.
I remember when I bought my car a few years ago, I specifically asked the dealership about the decoration fee. The salesperson told me that costs like adding leather seats or an audio system aren't included in the purchase tax because the tax is based on the bare car price, which is the basic vehicle price. Later, when I added decorations, the tax bill was still calculated at the original price. Simply put, if you spend 5,000 on decorations, this amount isn't included in the tax base, helping you avoid paying extra tax. However, it's important to note that if the decorations are sold as part of a bundled package, there might be exceptions, so it's advisable to clarify the contract details. I've thought about it, and this rule saved me quite a bit of money, especially when buying a new car—don't rush into spending on decorations all at once; you can do them separately.
