Is the vehicle purchase tax based on the manufacturer's suggested retail price or the actual transaction price?

[DeAdriana]

Vehicle purchase tax is calculated based on the actual transaction price. The taxable price for taxpayers purchasing vehicles for personal use is the total amount paid to the seller, including additional fees but excluding value-added tax (VAT). Currently, the vehicle purchase tax rate is 10% of the vehicle's selling price (excluding tax), while the VAT rate is 13%. The taxable price of the vehicle is the actual amount paid by the taxpayer to the seller (i.e., the "tax-exclusive price" on the bottom line of the invoice), which does not include VAT. Therefore, depending on the invoice price, there are two calculation methods for vehicle purchase tax: 1. When the invoice price shows the "total amount including tax," the formula is: Purchase Tax = Total Amount Including Tax ÷ 1.13 × 10%; 2. When the invoice price shows the "tax-exclusive price," the formula is: Purchase Tax = Tax-Exclusive Price × 10%.