What is the new calculation method for vehicle purchase tax in 2020?

[DiMichael]

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.