How Much is the Tax on Cars?
1 Answers
Car tax is calculated based on the total amount of fees and prices stated on the "Uniform Invoice for Motor Vehicle Sales," divided by (1+17%) as the tax basis, multiplied by 10%, which is the vehicle purchase tax payable. There are several taxes and fees required when purchasing a car: 1. Vehicle Purchase Tax; The purchase tax is a tax levied by tax authorities on the behavior and property related to the purchase of specified goods within the tax system's scope, such as the vehicle purchase tax. The vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China, evolving from the vehicle purchase surcharge. 2. Vehicle and Vessel Tax; The vehicle and vessel tax is a property tax levied on vehicles and vessels that are required by law to be registered with public security, transportation, agriculture, fisheries, military, and other management departments within China, calculated according to their type, based on the prescribed tax basis and annual tax standards. 3. Consumption Tax; This is a general term for various taxes levied on the turnover of consumer goods. It is a tax imposed by the government on consumer goods, which can be collected from wholesalers or retailers. The consumption tax is a typical indirect tax. For luxury cars exceeding 1.3 million, an additional 10% consumption tax is required.
