Should the Purchase Tax be Paid to the 4S Store or the Vehicle Management Office?
2 Answers
Payment of the purchase tax is generally handled by the local tax authorities. The vehicle management office is only responsible for vehicle registration. However, there is a time limit for this payment—within 60 working days from the date of purchase. Failure to pay within this period will result in a 5% late fee. Below are the relevant details about the vehicle purchase tax: 1. Introduction One: The purchase tax is a levy imposed on units and individuals purchasing vehicles within the country. It evolved from the vehicle purchase surcharge. If the consumer buys a domestic private vehicle, the taxable price includes the full payment made to the dealer and any additional fees, excluding the value-added tax (VAT) at a rate of 17%. 2. Introduction Two: Since the purchase price on the special invoice for motor vehicle sales includes VAT, the 17% VAT must first be deducted when calculating the vehicle purchase tax. That is, the taxable price for the vehicle purchase tax = invoice price ÷ 1.17, and then the vehicle purchase tax is calculated at a rate of 10%.
When it comes to the vehicle purchase tax, I've seen many people get confused about who to pay it to. The purchase tax is actually a national tax that ultimately goes to the tax bureau, not the 4S dealership or the vehicle management office. If you're picking up the car directly from a 4S dealership, they usually handle the tax payment on your behalf, transferring the tax amount to the tax authorities for convenience. If you choose to do it yourself, you'll need to bring the invoice to the local tax office to make the payment. The vehicle management office is only responsible for vehicle inspection and license plate registration—they don't collect this tax. The key is not to get the payment destination wrong, as it can delay the process. The purchase tax is generally 10% of the car's price, so when buying a new car, remember to budget for it and complete the payment before vehicle registration to avoid fines or license plate issues. Personally, when I bought my car, I opted to let the 4S dealership handle it to save time, but I recommend keeping the tax payment receipt in case of any future queries. These details can help you complete the car purchase process more smoothly.
