How to Calculate the Purchase Tax for a 1.4T Vehicle?

[MirandaLee]

1.4T purchase tax is calculated and levied at 10% of the vehicle's transaction price. Below is relevant information about vehicle purchase tax: 1. Taxable price: The taxable price includes all payments and additional expenses paid to the dealer, excluding VAT (tax rate 13%). Since the purchase price on the vehicle sales invoice includes VAT, the 17% VAT must be deducted first when calculating the vehicle purchase tax. 2. Specific new policy: The announcement shows that starting from July 1, 2019, the tax payable for consumers purchasing vehicles will depend on the 'actual payment amount', excluding VAT.

[LaKaylee]

I just got a new 1.4T car, and the vehicle purchase tax is actually quite straightforward. It's not based on engine displacement, but calculated from the invoice price of your car. The tax rate is 10%, but the taxable amount is the invoice price divided by 1.13 (since it includes VAT), then multiplied by 10%, which works out to roughly 8.85% of the total price. For example, if your car's invoice price is 150,000 yuan, the tax would be about 13,275 yuan. That's how my 1.4T was calculated—engine size doesn't matter. There used to be a half-rate discount for small-displacement cars at 5%, but that policy is canceled now, and all vehicles are uniformly taxed at 10%. Dealers usually handle this when you buy the car, but it's good to double-check so you don't get tricked. Also, don't confuse it with the annual vehicle and vessel tax—smaller engines like 1.4T do save you some there. Remember, if you want to save money, go for an NEV—pure EVs are completely exempt from purchase tax, haha!

[JohnnyLynn]

I'm considering buying a 1.4T car and learned something about how the purchase tax is calculated. It turns out the tax isn't directly based on the 1.4L displacement, but rather the car's invoice price multiplied by a 10% tax rate. You need to first determine the taxable price, which is roughly the total price minus the VAT portion. For example, with a car priced at 120,000 yuan, the tax would be approximately 10,620 yuan. Although the 1.4T is a small-displacement engine and more environmentally friendly, there's no difference in purchase tax—it's all calculated according to the standard rate. I initially thought the displacement affected the tax, but I was mistaken. When buying a car, you can confirm the invoice amount with the 4S store to avoid overpaying. By the way, such cars have lower vehicle and vessel tax during annual inspections, saving on fuel and costs. If you're on a tight budget, comparing quotes from multiple dealers can save you enough money to cover several years' worth of fuel. It's a shame there are no policy discounts, but overall, it's still reasonable.

[SanJoshua]

Calculating the purchase tax is straightforward: based on the invoice price of your 1.4T car, multiply by the tax rate of 10%. The taxable price is the invoice price divided by 1.13. For example, if the car price is 100,000 yuan, the tax is approximately 8,850 yuan. The 1.4T engine displacement does not affect the tax. The policy uniformly applies a 10% rate with no special discounts. When purchasing the car, make sure to note the invoice details to avoid any mistakes.