How to Calculate the Purchase Tax for New Cars in 2021?

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2021 new car purchase tax is calculated as: new car price (including tax) ÷ 1.17 (VAT rate of 17%) × purchase tax rate. Below is relevant information about vehicle purchase tax: 1. Main meaning: Vehicle purchase tax refers to the tax payable when purchasing a car. The tax amount is 10% of the car's selling price (excluding tax). The taxpayers for 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), with a tax rate of 10%. In addition to cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles are also subject to vehicle purchase tax. 2. Collection standard: According to the relevant provisions of the Ministry of Finance's document [2000] No. 18: The vehicle purchase tax paid by enterprises for acquiring taxable vehicles (including purchase, import, self-production, gift, award, or other means of acquisition for personal use) should be included in the cost of the vehicle as it is part of the related taxes and fees for purchasing fixed assets.