What does value-added tax mean when buying a car?

[MicahMarie]

Value-added tax (VAT) is a type of tax levied on the added value realized by entities or individuals engaged in the sale of goods, provision of processing, repair, and replacement services, or importation of goods. Relevant information about vehicle purchase tax is as follows: 1. Introduction: Vehicle purchase tax is a tax imposed on entities and individuals purchasing specified vehicles within the country, evolving from the vehicle purchase surcharge. 2. Tax payment location: For taxable vehicles requiring registration, tax should be declared and paid to the competent national tax authority at the vehicle registration location; for taxable vehicles not requiring registration procedures, tax should be declared and paid to the competent national tax authority at the taxpayer's location.