Is the Purchase Tax Calculated Based on the Ex-factory Price?

[DeLila]

Purchase tax is calculated based on the ex-factory price. Below are relevant details about purchase tax: 1. Calculation Method: The vehicle purchase tax is calculated based on the "minimum taxable price." In simple terms, the specific amount of purchase tax is not calculated based on the manufacturer's suggested retail price (MSRP), but rather on the ex-factory price (i.e., the price indicated on the purchase invoice). When the invoice price is lower than the minimum taxable price, the tax is levied based on the minimum taxable price. 2. Legal Basis: The legal basis is Article 9, Clause 5 of the "Vehicle Purchase Tax Collection and Management Regulations": For vehicles for which the State Taxation Administration has not determined a minimum taxable price, the taxable price shall be the price indicated on the valid price proof provided by the taxpayer. If the price indicated on the valid price proof is significantly low, the competent tax authority has the right to determine the taxable price of the vehicle.