Is the Vehicle Purchase Tax Calculated Based on the Ex-factory Price?
2 Answers
Vehicle purchase tax is calculated based on the purchase price (including tax), specifically the ex-factory price of the vehicle (i.e., the price indicated on the purchase invoice). Below is an introduction to the vehicle purchase tax: 1. Calculation method: New vehicle purchase tax amount = purchase price (including tax) ÷ 1.17, then the vehicle purchase tax is levied at a 10% rate. 2. Calculation formula: The formula for taxable amount is: Taxable amount = taxable price × tax rate (if it is lower than the minimum taxable price issued by the State Taxation Administration, the minimum taxable price stipulated by the State Taxation Administration shall be applied). 3. Notes: If consumers purchase imported private vehicles, they need to pay additional customs duties. Imported vehicle tax rate calculation: Taxable price = customs duty-paid price + customs duty + consumption tax taxable price × 10%.
As an average car owner, I remember being a bit confused about the purchase tax calculation when buying a new car last year. On the surface, it's indeed based on the ex-factory price, but the actual process isn't that straightforward. The ex-factory price refers to the price excluding any taxes, with a purchase tax rate of 10%. However, this is calculated on the amount after deducting the value-added tax portion from the ex-factory price. The VAT, usually included in the invoice price at a rate of 13%, means the actual calculation requires dividing the ex-factory price by 1.13 and then multiplying by 10%. For example, if I buy a car with an ex-factory price of 150,000 yuan, the purchase tax would be approximately 13,200 yuan, not the direct 10% of 150,000 yuan, which would be 15,000 yuan. This significantly increases the total cost, so it's wise to leave some extra room in the car-buying budget. I recommend using online calculators to verify the amount before purchasing to avoid unexpected large expenses. Different dealers might handle this slightly differently, so be sure to ask for details when consulting with sales personnel.
