Formula for Vehicle Purchase Tax?
3 Answers
Vehicle purchase tax = vehicle price excluding tax * vehicle purchase tax rate. The current vehicle purchase tax rate is 10%, and the VAT rate is 13%. The specific calculation formula is: vehicle purchase tax amount = vehicle price including tax / 1.13 * 10%. The following are the characteristics of vehicle purchase tax: 1. Single scope of taxation: As a property tax, the vehicle purchase tax is levied on specific vehicles purchased, rather than on all property or consumer goods. It has a narrow scope and is a type of special property tax. 2. Single collection point: The vehicle purchase tax is levied only once. It is not collected at every stage of production, operation, or consumption, but only at the specific point when the vehicle exits circulation and enters the consumption field. 3. Single tax rate: The vehicle purchase tax is levied at a single uniform proportional rate. The rate does not vary with the amount of the taxable object, making the calculation simple and the burden stable, which is conducive to tax administration according to law.
I remember calculating before when purchasing a car that the basic formula for vehicle purchase tax is the taxable price multiplied by a 10% tax rate. The taxable price is the invoice price of the car minus the value-added tax. For example, if you buy a car for 200,000 yuan (including 13% VAT), the price excluding tax would be 200,000 divided by 1.13, approximately 176,991 yuan, and the purchase tax would be 176,991 yuan multiplied by 0.1, approximately 17,699 yuan. This tax rate has remained unchanged since 2011 and is set by the central government to regulate automobile consumption. Why subtract VAT before calculating? Because the government stipulates that purchase tax is levied on the net price. Don't be fooled by dealers when buying a car; they might manipulate the invoice to charge extra. I suggest using a mobile calculator to calculate the tax yourself before buying a car or checking the accurate calculation method on the government's official website. This way, your budget can be more precise, avoiding overspending by thousands on the total car price, especially when buying electric vehicles where you can save some tax on registration.
As someone who often reads about others' car-buying experiences, the vehicle purchase tax calculation is actually quite simple: multiply the taxable amount by 10%. The taxable amount usually refers to the VAT-exclusive price on the car purchase invoice. For example, if you buy a new car for 180,000 yuan, the invoice price includes VAT. With a 13% VAT rate, the VAT-exclusive portion would be 159,292 yuan, making the tax 15,929 yuan. The tax rate hasn't been adjusted since 2015 and has been consistently implemented at 10%. Why use this formula? The government aims to control vehicle ownership and promote environmentally friendly models, but for ordinary consumers, buying an expensive car means higher taxes, while buying a cheaper car means lower taxes and savings. Don't believe some salespeople who claim they can help you reduce or waive the tax—that's fake. Understanding the formula yourself is the most reliable. I've seen friends save a lot on taxes when buying used cars because the tax basis is the assessed value, not the new car price. In short, always set aside this tax amount in your budget when buying a car.
