What is the import tax rate for cars in China?
2 Answers
China's import duty on complete vehicles is 15%. For an imported car in China, taxes are levied at three stages: 1. Import stage: The importer pays import duty, consumption tax, and value-added tax to customs. 2. Retail stage: The dealer pays value-added tax to the national tax bureau. 3. Registration stage: The consumer pays vehicle purchase tax to the national tax bureau. The final price for domestic consumers = foreign selling price + shipping cost + insurance + import duty + consumption tax + value-added tax + domestic dealer profit and shipping costs, etc. Only the foreign selling price + shipping cost + insurance are affected, with the adjusted import duty = (foreign selling price + shipping cost + insurance) * import duty rate of 15%.
I just bought an imported SUV, and the taxes were shockingly high. There's a 25% tariff, 13% VAT, plus a consumption tax based on engine displacement. For my 3.0L car, the consumption tax is 12%. The total tax burden can exceed half of the car's price. Smaller engines save a bit, like a 1.5L car with a 3% consumption tax, but overall taxes are still a major drawback. Free trade zone policies can reduce tariffs, and I regret not buying in Hainan's duty-free zone, where I could have saved a lot. Imported car taxes are a rip-off, driving up total costs and forcing many to switch to joint-venture brands. My advice is to do the math before buying and consider parallel imports, which have slightly lower taxes but higher after-sales risks. In short, China's tax system is harsh, so you need to budget carefully before making a purchase.
