What Taxes and Fees Need to Be Paid When Buying a Car?

[McJesse]

Taxes to be paid when buying a car include consumption tax, value-added tax, purchase tax, and vehicle and vessel tax. The relevant introduction is as follows: 1. Consumption Tax: The automobile consumption tax is a new tax category established during the national tax reform in 1994 and was included in the "Provisional Regulations of the People's Republic of China on Consumption Tax" implemented on January 1, 1994. For passenger cars, three tax rates are set based on different engine displacements, and this tax is levied on manufacturers. 2. Value-Added Tax: Value-added tax is a type of turnover tax levied based on the incremental value generated during the circulation of goods (including taxable services). 3. Purchase Tax: New car purchase tax = new car price (including tax) ÷ 1.17 (17% VAT rate) x purchase tax rate. 4. Vehicle and Vessel Tax: Vehicle and vessel tax, also known as vehicle and vessel usage tax, is a usage behavior tax levied on vehicles traveling on public roads and vessels sailing in domestic rivers, lakes, or harbors. The tax is calculated based on the type (such as motor vehicles, non-motor vehicles, passenger cars, cargo trucks, etc.), tonnage, and specified tax rates.