What Kind of Tax Is the Tax on Buying a Car?

[MacCaden]

Here are the taxes that need to be paid when buying a car: 1. Consumption Tax: Automakers are required to pay taxes when producing cars, which include the consumption tax, an indirect tax included in the price. 2. Value-Added Tax (VAT): The sale of goods or the provision of processing, repair, and replacement services, as well as the import of goods and the provision of tangible movable property leasing services, are subject to a 17% tax rate, which applies to car sales. 3. Purchase Tax: Starting from January 1, 2018, the vehicle purchase tax is levied at a statutory rate of 10%. 4. Vehicle and Vessel Tax: The vehicle and vessel tax, also known as the vehicle and vessel usage tax, is a usage tax calculated and levied based on the type, tonnage, and specified tax amount for vehicles traveling on public roads and vessels navigating domestic rivers, lakes, or territorial waters.