What Does On-the-Road Price Mean?

1 Answers
SanBrooke
07/29/25 8:26pm
On-the-road price refers to the total cost of purchasing a car and all the necessary legal procedures to drive it on the road (if it's a loan, the interest is calculated separately). The on-the-road price of a car is the sum of the purchase price, vehicle purchase tax, insurance, license plate fees, and other expenses. Below are the relevant details: 1. Calculation method: The calculation method for the new vehicle purchase tax is: (naked car price ÷ 1.17) × 10% (the current vehicle purchase tax rate is 10%). Note: The taxable price for taxpayers purchasing self-use taxable vehicles does not include value-added tax (VAT) (starting from May 1, 2018, the VAT rate for manufacturing, automobiles, and other industries was reduced from 17% to 16%, and the VAT rate for transportation, construction, basic telecommunications services, and agricultural products was reduced from 11% to 10%). 2. VAT: Since the purchase price in the special invoice for motor vehicle sales includes VAT, when calculating the vehicle purchase tax, the 17% VAT must first be deducted, i.e., the taxable price for vehicle purchase tax = invoice price ÷ 1.17, and then the vehicle purchase tax is calculated at a 10% rate.
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