How to Calculate Vehicle Purchase Tax in 2021?
1 Answers
The purchase tax is calculated by dividing the tax-included price of the new vehicle by 1.17 (the VAT rate is 17%), then multiplying by the purchase tax rate, which gives the specific purchase tax amount to be paid. Below is relevant information about the purchase tax: 1. Definition of Purchase Tax: Vehicle purchase tax is a tax levied by tax authorities on financial and property within the specified scope, and both individuals and entities are required to pay it. 2. Purchase Tax Rate: The purchase tax for motor vehicles is levied by tax authorities and applies to all vehicles that are officially registered with license plates in China. Starting from January 1, 2018, the purchase tax rate for passenger vehicles with an engine displacement of 1.6 liters or below has been restored to 10%, while before this date, the rate was 7.5%.