How Much Tax Do You Need to Pay When Buying a Car?

[ElijahLee]

Taxes required when buying a car: Consumption Tax, Value-Added Tax, Purchase Tax, and Vehicle and Vessel Tax. Below are the relevant details: 1. Consumption Tax: The commonly mentioned purchase tax when buying a car is actually an excise tax. In reality, car manufacturers also pay taxes when producing vehicles, which include the Consumption Tax, an internal tax. 2. Value-Added Tax: Value-Added Tax refers to a turnover tax levied based on the incremental value generated during the circulation of goods (including taxable services). 3. Purchase Tax: New car purchase tax = new car price (including tax) ÷ 1.17 (17% VAT rate) x purchase tax rate. 4. Vehicle and Vessel Tax: Vehicle and Vessel Tax is also known as the Vehicle and Vessel Usage Tax.