How Much Purchase Tax Should Be Paid for a 120,000 Yuan Car?
1 Answers
A car priced at 120,000 yuan requires a purchase tax of 10,619 yuan. Below is a detailed analysis: 1. Definition of Vehicle Purchase Tax: Vehicle purchase tax is a tax levied on entities and individuals purchasing specified vehicles within the country, evolving from the vehicle purchase surcharge. 2. Calculation Method of Purchase Tax: The vehicle purchase tax is calculated based on an ad valorem rate. The formula is: Taxable Amount = Taxable Price × Tax Rate. If the consumer buys a domestic private car, the taxable price is the total payment and additional fees paid to the dealer, excluding the value-added tax (VAT) (tax rate of 13%). Since the purchase price on the special invoice for motor vehicle sales includes VAT, the 13% VAT must first be deducted when calculating the vehicle purchase tax. That is, the taxable price for vehicle purchase tax = Invoice Price ÷ 1.13, and then the vehicle purchase tax is calculated at a rate of 10%.