How is the purchase tax for a new car calculated?

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2021 new car purchase tax is calculated as: new car price (including tax) ÷ 1.17 (17% VAT rate) × purchase tax rate. Below is relevant information about vehicle purchase tax: 1. Main meaning: Vehicle purchase tax refers to the tax payable when purchasing a car, with the tax amount being 10% of the vehicle's selling price (excluding tax). The taxpayers for vehicle purchase tax are units and individuals who acquire taxable vehicles (including through purchase, import, self-production, gift, award or other means for personal use), with a tax rate of 10%. In addition to cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles are also subject to vehicle purchase tax. 2. Collection standard: According to the provisions of the Ministry of Finance document [2000] No. 18: For enterprises acquiring taxable vehicles (including through purchase, import, self-production, gift, award or other means for self-use), the vehicle purchase tax paid in accordance with regulations should be included in the cost of the vehicle, as it belongs to the relevant taxes and fees for purchasing fixed assets.