What does vehicle value-added tax mean?
3 Answers
The so-called value-added tax is a type of turnover tax levied based on the incremental value generated during the circulation of goods (including taxable services). Below is relevant information: 1. Principle: In terms of taxation principles, value-added tax is a turnover tax imposed on the incremental value or added value of goods at various stages of production, circulation, and labor services. It is an ex-tax, meaning it is borne by consumers—tax is levied only when there is added value, and no tax is imposed if there is no added value. 2. Scope: The replacement of business tax with value-added tax mainly involves the following sectors: transportation and certain modern services. Transportation includes: land transport, water transport, air transport, and pipeline transport. Modern services include: research and technical services, information technology services, cultural and creative services, logistics support services, tangible movable property leasing services, and certification and consulting services. Therefore, purchasing a car requires paying this tax.
Regarding car value-added tax (VAT), I've discussed this with many car-buying friends. Essentially, it's a tax levied by our country during the vehicle sales process, with the current rate generally being 13%. For example, if a new car is priced at 100,000 yuan, adding VAT would increase the total to around 113,000 yuan—this tax isn't paid separately but is included in the total price, collected by the 4S dealership and then remitted to the authorities. The invoice when purchasing the car will clearly state the tax amount, which significantly impacts us consumers as it directly raises the new car price. I've also noticed many people confuse VAT with the vehicle purchase tax—the latter is an additional tax paid separately at the tax bureau after buying the car, based on engine displacement, potentially costing several thousand yuan more. So before purchasing, always calculate the total cost—don't just look at the base car price and end up losing out. As a piece of advice from experience, I recommend always asking the salesperson for the total after-tax price to budget properly. This approach saves both hassle and money.
Last time I bought a new car, the salesperson explained the value-added tax (VAT) on cars to me, and I was still a bit confused. Later, I figured out that it's similar to a consumption tax, with a rate of around 13%. Simply put, it's a tax the government adds to every new car, included in the car's price, so the amount you pay already includes this tax. For example, my car's base price was 80,000 yuan, but the total price was nearly 90,000 yuan. This tax is unavoidable for everyone and affects our car-buying decisions—if the budget is tight, you might consider a used car or saving more money. It's a bit easier to understand than the purchase tax because the purchase tax is another type of tax you pay separately at the vehicle management office after buying the car. After understanding this, I felt more transparent about buying a car and even shared with friends not to be fooled by the quoted price. In short, it's an additional cost, and managing it well can make spending smarter.
