How to Calculate 2.0 Purchase Tax in 2021?

[HavenLynn]

The payable amount of vehicle purchase tax = taxable vehicle's assessed price × tax rate. Calculation based on the "total amount including tax" on the invoice: Purchase tax = total amount including tax ÷ 1.13 × 10%. Calculation based on the "tax-exclusive price" on the invoice: Purchase tax = tax-exclusive price × 10%.

[ParkerAnn]

I bought a 2.0L displacement car in 2021, and the tax calculation is actually quite straightforward. First, you need to look at the total vehicle price on the invoice, say 200,000 yuan. Since the price includes 13% VAT, you have to deduct this part: divide 200,000 by 1.13, which comes to about 177,000 yuan—this is called the tax-exclusive price. Then calculate the tax: 177,000 multiplied by 10% gives you 17,700 yuan. This was the standard tax rate in 2021, with no discounts. Don’t forget, the tax amount is added to the total vehicle price when you pay. It’s advisable to double-check the invoice figures when buying a new car to avoid dealers overcharging and paying extra. Overall, the tax can account for 8-10% of the car’s price, which has a significant impact on your budget.