How is the current vehicle purchase tax calculated?
4 Answers
Currently, the calculation method for purchase tax is: the price on the car sales invoice ÷ 1.17 (VAT) × purchase tax percentage (7.5% this year) = vehicle purchase tax amount. Relevant information about vehicle purchase tax is as follows: 1. Introduction: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within the country, evolving from the vehicle purchase surcharge. 2. Tax payment location: For purchasing taxable vehicles, tax should be declared and paid to the competent national tax authority where the vehicle is registered; for purchasing taxable vehicles that do not require registration procedures, tax should be declared and paid to the competent national tax authority where the taxpayer is located.
When I bought my car last time, I specifically researched the purchase tax. The calculation is actually quite simple: just divide the actual price you paid for the car (including tax) by 11.3. For example, if you buy a car for 150,000 yuan, the purchase tax would be approximately 150,000 ÷ 11.3 ≈ 13,274 yuan. A key point here is that the car price must be the total tax-included price on the invoice, not the ex-factory price. If you try to save money by having the 4S dealership underreport the invoice price, the tax authorities have a minimum taxable price as a safeguard, so you won't save a single cent on the tax you owe. Right now, buying a new energy vehicle is the most cost-effective option—pure electric and plug-in hybrid vehicles are completely exempt from purchase tax, saving you over 10,000 yuan. However, gasoline cars still require full tax payment, and it must be paid before license plate registration, otherwise the DMV won't process your paperwork.
My friend just bought a Civic, and I accompanied him to pay the purchase tax, which helped me understand the calculation method. Simply put, the car price is first divided by 1.13 to get the price excluding VAT, and then multiplied by a 10% tax rate. For example, if the base car price is 120,000 yuan, with VAT it's approximately 135,600 yuan, so the purchase tax would be 135,600 ÷ 1.13 × 0.1 = 12,000 yuan. Note that this car price includes all additional configuration costs, such as spending 5,000 yuan on leather seats, which also increases the purchase tax. Currently, domestic electric vehicles enjoy excellent policies, with full exemption from purchase tax and free green license plates. Last year, my cousin bought a BYD Han and saved nearly 20,000 yuan in purchase tax. Those planning to change cars should pay attention to tax policy changes, as there have been previous discounts like a 50% reduction in purchase tax.
To calculate the purchase tax, just remember three numbers: tax rate 10%, VAT rate 13%, and conversion factor 11.3. Simply divide the car invoice amount by 11.3 to get the purchase tax amount. When I bought a car for my daughter, her 158,000-yuan Corolla had a purchase tax of 13,982 yuan. Pay special attention that the purchase tax calculation base includes all car purchase expenses, such as loan handling fees and decoration costs. Now, new energy vehicles are tax-free, which is a great money-saving trick—my colleague bought a Tesla and didn’t pay a penny in purchase tax. Don’t worry too much about buying a fuel car either; some cities this year still offer car purchase subsidies that can offset part of the tax burden. It’s recommended to make an appointment for tax payment on the State Taxation Administration website three days before going for license plate registration.
