How to Calculate Vehicle Purchase Tax for an 11.3 Car?

[CassidyLee]

Vehicle purchase tax amount = (Total price including tax on the car purchase invoice) / 1.13 × 10%, i.e., vehicle purchase tax amount = (Ex-factory price / 1.13) × 0.1. The reason for dividing by 1.13 is that the car price already includes 13% VAT. Below is more information about the purchase tax: 1. What is purchase tax: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within China according to the "Interim Measures on Vehicle Purchase Tax", which evolved from the vehicle purchase surcharge. 2. When to pay vehicle purchase tax: According to relevant regulations, the purchase tax must be paid before the vehicle is registered, i.e., before the vehicle is licensed. 3. Import car tax rate calculation: Taxable price = (Customs duty-paid price + Customs duty) ÷ (1 - Consumption tax rate).