What is the percentage of vehicle purchase tax?
4 Answers
Vehicle purchase tax is calculated based on 10% of the vehicle's price excluding VAT, and there is no specific tax rate. Vehicle Purchase Tax: It is a tax levied on units and individuals who purchase specified vehicles within China, evolving from the vehicle purchase surcharge. The tax applies only to listed vehicles, with unlisted vehicles exempt. The taxable scope includes cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles. Where to pay vehicle purchase tax: For taxable vehicles requiring registration, the tax should be declared and paid to the competent national tax authority at the vehicle registration location. For taxable vehicles not requiring registration, the tax should be declared and paid to the competent national tax authority at the taxpayer's location.
I just bought a new car, and the purchase tax is usually calculated at 10% of the invoice price. I remember when I bought the car, the invoice was for 150,000 yuan, so I paid 15,000 yuan in tax. Currently, there are full exemptions for new energy vehicles like electric cars, which can save you thousands. Friends buying cars should budget for this cost—it's not like insurance where you can negotiate the price; it's directly added to the total cost. From my personal experience, opting for new energy can save you on taxes, but for gasoline cars, the tax rate is fixed with no room for negotiation. This tax is used for road and transportation construction, which in the long run benefits all drivers. Before purchasing, it's best to confirm the details with the 4S store salesperson to avoid being misled.
The purchase tax is generally around 10%, which is a noticeable additional expense when buying a car. Last time I was choosing a car, the listed price was 180,000 yuan, and the tax alone was nearly 20,000 yuan—that's several months of salary to save up. I think it's particularly burdensome for young people on tight budgets. Fortunately, electric vehicles are now tax-exempt as the government is promoting environmental protection, so taking advantage of this opportunity to buy an EV can reduce the financial burden. The tax is collected by the government for road maintenance, so don't expect it to be waived. When calculating the tax, always refer to the invoice price, not the advertised low price. If the total cost of the car is high, you might consider taking out a larger loan or delaying the purchase. In short, calculate everything in advance to avoid regrets.
The vehicle purchase tax rate is mostly set at 10%. The government established this percentage to raise transportation funds, with historical minor adjustments such as tax reductions for small-displacement vehicles. Currently, new energy vehicles like electric cars are entirely tax-exempt, strongly encouraging green mobility. The tax must be paid in full at the time of vehicle purchase—don't miss it.
