How to Calculate the Purchase Tax for a 1.5T Vehicle?
2 Answers
The calculation formula for the purchase tax of a 1.5T vehicle is: Purchase Tax Payable = Taxable Price of the Vehicle × Tax Rate. The purchase tax is not affected by the vehicle's displacement. According to the "Purchase Tax Law," the domestic vehicle purchase tax is 10% of the vehicle's sales price (excluding tax), while the VAT rate is 13%. If calculated based on the "Total Amount Including Tax" on the invoice: Purchase Tax = Total Amount Including Tax ÷ 1.13 × 10%. If calculated based on the "Tax-Exclusive Price" on the invoice: Purchase Tax = Tax-Exclusive Price × 10%. The vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China. It evolved from the vehicle purchase surcharge. The basic regulation of the vehicle purchase tax law is the "Interim Regulations on Vehicle Purchase Tax of the People's Republic of China," implemented on January 1, 2001. The taxpayers of the vehicle purchase tax are units and individuals who acquire taxable vehicles (including purchase, import, self-production, gift, award, or other means of acquisition for personal use). The tax rate is 10%. In addition to cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles are also subject to the purchase tax. According to Articles 5 and 6 of the "Vehicle Purchase Tax Law of the People's Republic of China" (hereinafter referred to as the Purchase Tax Law) promulgated on July 1, 2019, the taxable value is the total price actually paid by the taxpayer to the seller (excluding VAT). The state sets a minimum taxable price for each vehicle model. If the taxable price on the car purchase invoice is lower than the state's minimum taxable price, the purchase tax is calculated based on the minimum taxable price. The purchase tax is only paid once when purchasing a new vehicle and does not need to be paid again afterward. After paying the purchase tax, the tax authority will issue a purchase tax payment certificate, which should be kept safely. When purchasing a vehicle, the 4S store will issue a purchase invoice, and one copy of the invoice must be submitted to the vehicle management office for registration. The purchase invoice should also be kept for future use, such as during resale. For vehicles that have already paid the purchase tax, if the vehicle needs to be returned to the manufacturer due to quality issues, a tax refund can be processed with the manufacturer's return certificate. The original purchase tax payment certificate must be returned for the refund; otherwise, the refund will not be granted. For vehicles that have already paid the purchase tax, if the manufacturer needs to replace the vehicle due to quality issues, the purchase tax change procedure can be processed with the manufacturer's replacement certificate and the new vehicle's invoice. The original purchase tax payment certificate must be returned; otherwise, the change procedure will not be processed. If the taxable price of the new vehicle is equal to the original vehicle's taxable price, only the change procedure is required. If the new vehicle's taxable price is higher or lower than the original vehicle's, the difference will be taxed or refunded before processing the change. For vehicles that have already paid the purchase tax, if the engine number, chassis number, or vehicle identification number is altered or damaged due to theft or other reasons, the purchase tax change procedure can be processed with the original purchase tax payment certificate and relevant proof from the vehicle management authority. New energy vehicles are exempt from the purchase tax. According to the announcement by the Ministry of Finance, State Taxation Administration, and Ministry of Industry and Information Technology on the exemption of new energy vehicles from purchase tax: From January 1, 2021, to December 31, 2022, purchasing new energy vehicles is exempt from the purchase tax. New energy vehicles exempt from the purchase tax include pure electric vehicles, plug-in hybrid vehicles (including range-extended vehicles), and fuel cell vehicles. New energy vehicles have been exempt from the purchase tax since September 2014, with the policy valid until December 31, 2017. The policy was extended for another three years until the end of 2020 and then extended for two more years. Users who purchase new energy vehicles before 2023 can enjoy the exemption from the purchase tax.
Last year, I bought a 1.5T SUV, and the purchase tax was a mandatory fee when purchasing the car. The invoice showed a car price of 150,000 yuan, and the salesperson told me to first calculate the price excluding VAT, which is 13%. So, 150,000 divided by 1.13 comes out to approximately 132,743 yuan. Then, the purchase tax is 10% of this amount, about 13,274 yuan. It was all included in the down payment and paid in full with a single swipe of the card at the time of payment. I remember that 1.5T cars have a smaller displacement and fall under the energy-saving and emission-reducing category, which had a 5% discounted tax rate a few years ago, saving a lot. Unfortunately, I didn’t benefit from it last year. I suggest checking government announcements or asking the 4S store for the latest policies before buying a car to avoid missing out on savings. If the car price is higher, the tax also increases accordingly. For example, a 200,000 yuan car would have a tax exceeding 17,000 yuan. Choosing the right time to buy can save you some money.
