Do domestic cars pay purchase tax?

1 Answers
SanValerie
07/29/25 3:34am
Domestic cars are subject to purchase tax. Below is the relevant introduction about vehicle purchase tax: 1. The purchase tax is uniformly applied nationwide, and both imported and domestic cars are subject to purchase tax. The purchase tax is designed to reasonably raise construction funds, adjust income disparities, combat smuggling, and safeguard national interests. 2. The vehicle purchase tax rate is 10%. 3. The calculation formula for vehicle purchase tax in 2021 is: Taxable amount of vehicle purchase tax = Taxable vehicle's taxable price × Tax rate. (1) Calculated based on the "total amount including tax" on the invoice: Purchase tax = Total amount including tax ÷ 1.13 × 10% (the current VAT rate for cars is 13%); (2) Calculated based on the "tax-exclusive price" on the invoice: Purchase tax = Tax-exclusive price × 10%.
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