What is the percentage of vehicle purchase tax?
2 Answers
Vehicle purchase tax accounts for 10 percent. Starting from July 1, 2019, according to the "Vehicle Purchase Tax Law of the People's Republic of China," the vehicle purchase tax is 10%. The purchase tax is calculated and levied at 10% of the vehicle price. Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within the country, and it evolved from the vehicle purchase surcharge. Vehicle purchase tax refers to the tax payable when purchasing a car. The purchase tax amount is 10% of the car's selling price (excluding tax). The taxpayers of vehicle purchase tax are units and individuals who purchase (including buying, importing, self-producing, receiving as a gift, winning as a prize, or obtaining through other means and using for themselves) taxable vehicles, with a tax rate of 10%. In addition to cars, motorcycles, electric vehicles, trailers, and agricultural transport vehicles are also subject to vehicle purchase tax. For vehicles that have already paid the vehicle purchase tax, if the vehicle needs to be returned to the manufacturer due to quality issues, a tax refund can be processed with the manufacturer's return certificate; the original tax payment certificate of the vehicle purchase tax must be surrendered when applying for the refund; those who cannot surrender the original tax payment certificate will not be eligible for a tax refund.
The most headache-inducing part when buying a car is the purchase tax, which is generally 10% of the car's price. For example, if I chose a new car with a sticker price of 150,000 yuan, the purchase tax would be 15,000 yuan. This amount is calculated based on the invoice price, excluding insurance and license plate fees. I remember checking the policy with the dealer in advance. To promote environmental protection, the government now exempts most electric and hybrid vehicles from this tax, like my friend who bought a BYD and saved a significant amount. The purchase tax is a national tax, and it's said to be used for building highways. It's best to budget carefully before buying a car, so you don't end up tight on funds like I almost did. When actually paying the tax, you also need to consider the vehicle type and engine displacement, as there are occasional discounts for smaller displacements. Overall, 10% is the standard rate, but don't forget that policies are adjusted annually. Checking the official website is the most accurate way to avoid being misled. Oh, and keep the tax receipt safe—it might be needed for warranty claims.
