How is the vehicle purchase tax calculated now?
2 Answers
Currently, the calculation method for the 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: Introduction: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within the territory, which evolved from the vehicle purchase surcharge. Tax payment location: For purchasing taxable vehicles that require registration, tax should be declared and paid to the competent national tax authority in the vehicle registration location; for purchasing taxable vehicles that do not require registration procedures, tax should be declared and paid to the competent national tax authority in the taxpayer's location.
When I first bought a new car, I was completely confused about the purchase tax. Later, I figured out that in China, the purchase tax is calculated as 10% of the invoice price excluding VAT. For example, if your car's invoice price is ¥150,000 before VAT, multiplying it by 0.1 means you'll pay ¥15,000 in tax. To promote new energy vehicles, the government often offers reductions or full exemptions for electric and hybrid cars, which can save a lot of money. One of my buddies bought an electric model and paid no tax at all. When buying a car, pay close attention to the invoice details to avoid hidden fees—some dealers might inflate the price to affect the tax amount. Compare prices from several 4S stores; choosing a lower-priced car not only reduces the tax but also makes the overall expenses more manageable. Remember to factor this into your budget beforehand to avoid emptying your wallet when signing the contract. It’s also a good idea to download a car app to check for policy updates—super handy.
