What is the new calculation method for vehicle purchase tax in 2020?
3 Answers
Vehicle purchase tax in 2020 is calculated based on the new regulations as follows: According to the relevant provisions of the new regulations, the vehicle purchase tax is calculated using an ad valorem rate method. The tax is calculated at a rate of 10% based on the taxable price of the purchased vehicle. The taxable price for a new vehicle includes the actual payment price and some additional fees, such as transportation fees, loading and unloading fees, and packaging fees, but excludes value-added tax (VAT). Therefore, when calculating the vehicle purchase tax, the tax-inclusive price must be converted to a tax-exclusive price for calculation. If the purchased vehicle is an imported vehicle, the taxable price is the customs duty-paid price plus customs duties and consumption tax. Additionally, according to the relevant provisions of the new regulations, there are five types of tax-exempt vehicles in the new vehicle purchase tax, meaning eligible vehicles can be exempt from the vehicle purchase tax.
I remember spending time figuring out this tax when I bought my car the year before last. The 2020 new calculation method is quite straightforward: the vehicle purchase tax is levied at 10% of the car price after deducting VAT. For example, if you buy a car priced at 200,000 yuan with a 13% VAT rate, the tax-exclusive price would be approximately 177,000 yuan (200,000 divided by 1.13), and the tax would be about 1,770 yuan (177,000 multiplied by 10%). This makes it much clearer when actually paying out of pocket, helping to control the budget. I also noticed that the policy continues the framework established since 2019, aiming to simplify fees and promote car consumption. When calculating taxes, it's best to use the price on the car purchase invoice rather than just focusing on the sticker price. If you have the option to choose a new energy vehicle, the tax can be fully exempted, saving a significant amount—definitely worth considering. From personal experience, calculating this tax in advance can prevent financial strain after buying a car, especially for first-time buyers.
Having worked at a car dealership for several years, I often help customers understand this calculation method. The 2020 rules were straightforward: the purchase tax was calculated as 10% of the vehicle price after deducting VAT. Specifically, the taxable amount is the total invoice amount divided by 1.13 (VAT rate of 13%), then multiplied by the tax rate of 10%. For example, for a car priced at 180,000 yuan, the tax would be 180,000 divided by 1.13, approximately 159,000, multiplied by 0.1, equaling 1,590 yuan. This method makes it easier for car owners to estimate the total cost, unlike the more complicated methods before. I also remind everyone to ensure the invoice information is accurate and not inflated by the 4S dealership. Related advice: compare several lower-priced models before buying to naturally reduce the tax; if the budget is tight, prioritize new energy vehicles, which were fully tax-exempt under the 2020 policy. I've helped many people save money, and this tax calculation method is much more practical.
