How to Calculate the Vehicle Purchase Surcharge?
2 Answers
Calculation method: For new vehicles with an engine displacement above 1.6, divide the vehicle price by 1.17 and then multiply by 10%. For new vehicles with an engine displacement below 1.6, divide the vehicle price by 1.17 and then multiply by 5%. Here are the relevant details: 1. New vehicle calculation: Since the price of a new vehicle already includes tax when purchased, there is no need to pay additional new vehicle tax. This means removing the 17% value-added tax and then multiplying the vehicle price by the national policy on new vehicle surcharges. 2. Vehicle purchase tax: The vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within the country. It evolved from the vehicle purchase surcharge.
Having been in the automotive industry for a long time, I'd like to share my experience on how the vehicle purchase surcharge is calculated. Simply put, in China, this surcharge is actually the vehicle purchase tax, with a fixed rate of 10%, but the calculation must exclude VAT. The formula is: Purchase Tax = (Invoice Price ÷ 1.13) × 0.10. The invoice price is the total price in the purchase contract, which includes 13% VAT. Dividing by 1.13 gives the price excluding tax, and then multiplying by 10% gives the tax amount. For example, if you buy a car with an invoice price of 200,000 yuan, dividing by 1.13 gives approximately 177,000 yuan, and multiplying by 0.1 gives a tax of 17,700 yuan. Note that new energy vehicles may have reductions or exemptions, which can save a lot of money; imported cars may have additional taxes, and policies may vary slightly by region. Paying the tax is a prerequisite for registration—without paying the tax, you can't complete the formalities. Make sure to include this in your budget when buying a car, not just the car price, to avoid surprises. Always check the latest policies to avoid outdated information and unnecessary detours.
