What is Purchase Tax?

[Isabela]

Purchase tax is a type of tax levied on units and individuals who purchase specified vehicles within China. Below is a detailed introduction to vehicle purchase tax: Tax rate and calculation: The taxpayers of vehicle purchase tax are units and individuals who purchase taxable vehicles, with a tax rate of 10%. The formula for calculating the tax payable is: Tax payable = Taxable price × Tax rate. Laws and regulations: Vehicle purchase tax is a mandatory tax for purchasing vehicles. All vehicle owners within China, whether individuals or collective units, must pay the vehicle purchase tax. Only vehicles that have paid the purchase tax can legally be driven on the road.