Does the Ex-factory Price Include Purchase Tax?
3 Answers
Ex-factory price does not include purchase tax. Purchase tax is a tax levied by tax authorities on the acquisition of specified properties and assets within the scope of the purchase tax system. Below is an introduction to ex-factory price and purchase tax: Ex-factory Price: Generally, the on-road price of a car is based on the ex-factory price. After purchasing a car at the ex-factory price, consumers need to pay purchase tax, various insurance fees, vehicle inspection, and license plate registration fees. Purchase Tax: Vehicle purchase tax is a tax levied on entities and individuals purchasing specified vehicles within the country. It is determined by the ex-factory price of the vehicle (excluding VAT). The more expensive the car, the higher the purchase tax required. Currently, the vehicle purchase tax rate is 10%.
When I bought a car before, I was also confused and thought the ex-factory price included the purchase tax. But when I went to pick up the car, the salesperson said I had to pay the tax separately, and then I realized that the ex-factory price is just the basic price of the car and doesn't include any taxes at all. The purchase tax is mandatory by the state, calculated as a percentage of the car's price, usually 8% to 10%, and paid separately at the time of purchase. That time I bought a car for 150,000 yuan, the ex-factory price was written as 150,000 yuan, but in the end I paid almost 170,000 yuan, including the purchase tax and insurance. Friends who buy cars are often tricked, focusing only on the ex-factory price and ignoring the total cost, which can easily exceed the budget. Remember to ask the 4S store or check the contract before buying a car, the ex-factory price is the starting point, but the total price is the key to spending money.
I know a guy who got confused when he first bought a car, thinking the ex-factory price included the purchase tax. Only after signing the contract and during payment did he realize that a tax fee suddenly appeared, making him understand that the ex-factory price only refers to the vehicle's base price, and the purchase tax must be calculated separately into the total cost. This tax is based on a percentage of the vehicle price excluding VAT, and the rate varies for different models. You have to pay it after buying the car to get the license plate. Now, I remind newbies not to just focus on the excitement of the ex-factory price when buying a big car, as the budget might get tight with higher taxes and insurance, possibly making the actual expenses unaffordable. It's essential to carefully calculate every cost.
