How Much is the Vehicle Tax?
2 Answers
Vehicle tax refers to the vehicle purchase tax that needs to be paid when buying a car, which is approximately 10% of the vehicle price divided by 1.17. Below are the specific details about the tax: 1. In some foreign countries, there are three stages of automobile taxation: the purchase stage, the ownership stage, and the usage stage. 2. The vehicle purchase tax required when buying a car is 10%: The calculation formula is taxable amount = taxable price × tax rate. The taxable price for vehicle purchase tax = invoice price ÷ 1.17, and then the vehicle purchase tax is calculated at a 10% rate. 3. The time for paying the vehicle purchase tax: The tax must be paid within 60 days from the date of purchase. 4. Documents required for paying the purchase tax: original purchase invoice, tax payment copy of the purchase invoice, original and copy of the vehicle's certificate of conformity, the owner's ID card and its copy, tax declaration form, etc.
When I bought my first car, the vehicle taxes really shocked me. The purchase tax is usually 10% of the car's price, so for my new car worth 100,000, I had to pay 10,000 in taxes. Additionally, there's an annual vehicle and vessel tax, which ranges from a few hundred to several thousand depending on the engine displacement. Smaller engines save some money but have weaker power, while larger engines are more fun to drive but significantly more expensive. I also had to consider city policies, as major cities like Beijing and Shanghai might charge extra environmental fees or impose traffic restriction fines. New energy vehicles can get tax reductions or exemptions, but I didn't choose one due to my limited budget at the time. These taxes add up to a considerable amount, so I recommend checking local government websites to estimate the total cost before buying a car—don't just look at the sticker price, as it can affect your living expenses later. Remember to factor in insurance and taxes as part of your routine car maintenance costs. When you're young, you need to budget carefully when choosing a car to avoid overspending.
