How Much Tax is Levied on Imported Cars?

[Archer]

There are three main taxes on imported cars, with the following calculation formulas: 1. Tariff: Tariff = Declared Customs Value × 25% 2. Consumption Tax: Consumption Tax = (Declared Customs Value + Tariff) ÷ (1 - Consumption Tax Rate) × Consumption Tax Rate 3. Value-Added Tax (VAT): VAT = (Declared Customs Value + Tariff + Consumption Tax) × 17% 4. Total Tax Rate: Total Tax Rate = 146.25% ÷ (1 - Consumption Tax Rate) × Consumption Tax Rate + 46.25% Currently, an imported car in China is taxed in three stages: 1. Import Stage: The importer pays Import Tariff, Import Consumption Tax, and Import VAT to the customs. 2. Retail Stage: The dealer pays VAT to the State Tax Bureau. 3. License Plate Registration Stage: The consumer pays the Vehicle Purchase Tax to the State Tax Bureau.