How Much Tax Do You Need to Pay When Buying a Car?
2 Answers
When buying a car, the taxes you need to pay include: 1. Vehicle Purchase Tax: The general tax rate is 10%. According to the "Provisional Regulations of the People's Republic of China on Vehicle Purchase Tax," the taxpayers of the vehicle purchase tax are units and individuals who purchase (including buying, importing, self-producing, receiving as gifts, winning as prizes, or obtaining through other means for personal use) taxable vehicles. The taxable scope includes cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles. 2. Vehicle and Vessel Usage Tax: This is generally paid when purchasing compulsory traffic insurance for the vehicle. The vehicle and vessel tax is a local tax. Based on the "Provisional Regulations of the People's Republic of China on Vehicle and Vessel Tax" and other regulations, the collection standard of the vehicle and vessel tax should also be determined according to the specific management measures formulated by local tax authorities. The vehicle and vessel tax can be paid together with the compulsory traffic insurance. The vehicle and vessel tax is paid annually, and the amount varies by region. 3. Value-Added Tax and Import Tariff: Imported cars are also subject to a 17% value-added tax and a 25% import tariff. The purchase tax for imported cars = taxable price × 10%, where the taxable price = customs duty-paid price + import tariff + consumption tax.
When I bought my new car, I specifically researched the tax issues. The biggest expense was the purchase tax, which is 10% of the car's price. For example, a 200,000 yuan car would incur 20,000 yuan in tax. The vehicle and vessel tax is also paid annually, and it depends on the engine displacement. My 1.5L car costs just over 300 yuan per year. The license plate fee varies by region, and in my area, it's around 300-500 yuan. New energy vehicles can save on purchase tax, but the gasoline car I was interested in didn't qualify for this discount. I recommend asking the 4S shop to provide a detailed list before picking up the car. Last time, I was charged a 2,000 yuan service fee, which I later found out was an unjustified charge. Vehicle insurance is another cost to consider, with compulsory traffic insurance starting at 950 yuan. All these additional costs can account for 10%-15% of the car's price.