How to Calculate Vehicle Purchase Tax in 2018?
3 Answers
Vehicle purchase tax = purchase price ÷ (1+17%) × 10%. There are 3 methods to calculate the purchase tax: 1. For personal use purchase: The total payment to the seller including all fees, divided by (1+13%) as the tax basis, multiplied by 10% (7.5% for passenger vehicles with 1.6L or smaller displacement) equals the payable vehicle purchase tax; 2. For personal use import: Taxable price = customs duty-paid price + customs duty + consumption tax; 3. For self-produced or gifted vehicles: The tax basis is determined by the vehicle purchase office with reference to the approved minimum taxable price. For personal use purchase or import vehicles, if the declared taxable price is lower than the minimum taxable price of the same type of vehicle.
Speaking of the vehicle purchase tax calculation in 2018, it was quite straightforward, basically 10%. The tax is based on your car purchase invoice, so don't worry. The invoice price already includes value-added tax (VAT), so you need to deduct the VAT first. In 2018, the VAT rate was 17%, so you divide the invoice price by 1.17 to get the tax-exclusive price, then multiply by 10% to get the tax amount. For example, if the car price is 100,000 yuan, the tax-exclusive price would be 100,000 divided by 1.17, approximately 85,470 yuan, and the tax would be about 8,547 yuan. The tax rate was uniformly 10% for all vehicles in 2018, unlike previous years when there were discounts for small-displacement vehicles. Remember this, don't let the salesperson fool you. The tax amount significantly affects the total cost of the car, with differences of several thousand yuan making a big impact.
To pay less purchase tax, the 2018 tax rate was fixed at 10%, but the invoice price is the key factor. When buying a new car, if the dealer issues a lower invoice price, you'll pay less tax. However, make sure it's legal and avoid false invoicing. The calculation method is as follows: divide the invoice price by the VAT rate of 1.17, then multiply by 10% to get the tax amount. The VAT system was adjusted in 2018, with the rate dropping from 17% to 16% after May, but this didn't significantly change the purchase tax calculation, which remained at 10%. Communicate the invoice amount with the dealer before purchasing, budget the tax cost, and save where possible. Overall taxes also affect insurance and subsequent expenses, so don't just focus on the car price.
