How is Vehicle Purchase Tax Calculated?

[BeckettMarie]

Vehicle Purchase Tax payable is calculated using the following formula: Tax Payable = Taxable Price × Tax Rate (if the taxable price is lower than the minimum taxable price issued by the State Taxation Administration, the minimum taxable price stipulated by the State Taxation Administration shall be applied). The taxable price of a vehicle is determined according to the following provisions: 1. For taxpayers purchasing vehicles for personal use, the taxable price is the total amount actually paid to the seller, excluding VAT; 2. For taxpayers importing vehicles for personal use, the taxable price is the customs duty-paid price plus customs duties and consumption tax; 3. For taxpayers producing vehicles for personal use, the taxable price is determined based on the selling price of similar taxable vehicles produced by the taxpayer, excluding VAT; 4. For taxpayers acquiring vehicles for personal use through gifts, awards, or other means, the taxable price is determined based on the price stated in relevant documents at the time of acquisition, excluding VAT.