Do domestically produced cars have vehicle and vessel tax?
1 Answers
Domestically produced cars are subject to vehicle and vessel tax, which is also known as the vehicle and vessel usage tax. The vehicle and vessel usage tax is a type of usage behavior tax levied on vehicles traveling on public roads and vessels navigating domestic rivers, lakes, or territorial ports, calculated based on their type, tonnage, and prescribed tax rates. According to relevant regulations, car owners must pay the vehicle and vessel usage tax when purchasing auto insurance. The tax can be paid by the insurance company on behalf of the owner, eliminating the need for the owner to visit national tax authorities to complete the payment. The payment standards for vehicle and vessel tax vary by region and also differ based on the type of vehicle. For example, the standards for trucks, sedans, and buses are all different. If car owners need to inquire about the vehicle and vessel usage tax, the insurance company will calculate the tax amount when the auto insurance is purchased. The vehicle and vessel tax is levied annually. Taxpayers must pay the full year's tax in one installment within the prescribed tax declaration period. For newly purchased vehicles or vessels, the taxable amount for the year of purchase is calculated monthly from the month when the tax obligation arises. The calculation formula is: taxable amount = (annual taxable amount ÷ 12) × number of taxable months.