What taxes and fees are required for imported cars?
3 Answers
Buying an imported car requires the following taxes and fees: 1. Tariff: The tax rate is 34.2% for engines below 3 liters (excluding 3 liters), and 37.6% for engines above 3 liters. 2. Payable tariff: Customs declaration price * tariff rate. 3. Consumption tax: The rate is 3% for engines below 1.0 liters, and 8% for engines between 1.0 and 2.2 liters. Partial information from the "Tax Collection and Administration Law of the People's Republic of China" is as follows: 1. Article 32: If a taxpayer fails to pay taxes within the prescribed time limit, or a withholding agent fails to remit taxes within the prescribed time limit, the tax authority shall, in addition to ordering payment within a specified time limit, impose a late payment fee of 0.05% per day from the date the tax payment is delayed. 2. Article 33: Taxpayers shall apply for tax reductions or exemptions in accordance with laws and administrative regulations. Any tax reduction or exemption decisions made arbitrarily by local people's governments, government departments at all levels, units, or individuals in violation of laws and administrative regulations are invalid, and tax authorities shall not implement them and shall report to higher-level tax authorities.
I previously helped a friend handle imported car matters, and the tax structure for imported vehicles is actually quite systematic. Let's start with tariffs: the country imposes different rates depending on the vehicle model, typically around 15% for small cars, while luxury vehicles may reach 25%, significantly impacting the final price. Consumption tax is even more critical—it's tiered based on engine displacement: about 1% for under 1.5L, 5% for 2.0L, and up to 40% for 2.5L and above. This is especially important to note, as high-displacement cars incur much higher taxes. The value-added tax (VAT) is now uniformly set at 13% and is applied on top of the tariff and consumption tax. Beyond these import taxes, buyers must also pay a purchase tax, usually 10% of the vehicle price, paid separately upon delivery. Combined, taxes and fees can exceed 50% of the original car price, turning a 500,000 RMB car into an 800,000 RMB expense. I recommend checking the customs policy website or consulting a professional intermediary to assess total costs before purchasing to avoid overspending. Parallel imports sometimes offer lower taxes but come with higher risks, so the import method should be chosen carefully.
I've purchased several imported cars and personally experienced the heavy tax burden. Tariffs vary by vehicle type, for example, 15% for American cars and possibly 20% for EU cars, directly added to the car price. The consumption tax is the most troublesome, with rates as high as around 30% for engines over 2.0L, slightly lower for smaller displacements, but overall pushing up costs. The 13% VAT is mandatory and included in the total tax. At the time of pickup, there's also a 10% purchase tax, paid separately. For example, a car originally priced at 400,000 RMB could have import taxes exceeding 200,000 RMB, affecting purchasing decisions. I've saved on taxes by comparing different brands, such as choosing smaller displacement Japanese cars with lower rates. Tax policies frequently change, like the 2022 tariff adjustments, so it's important to ask dealers for details when buying. Overall, taxes take up a significant portion of the budget, so I recommend using a mobile app to calculate tax estimates.
