What taxes are involved when buying a new car?
2 Answers
New car taxes include: 1. Vehicle Purchase Tax: This is mandatory when purchasing a car, usually at a rate of 10%. It only needs to be paid once per vehicle; 2. Vehicle and Vessel Usage Tax: Generally paid annually when purchasing compulsory traffic insurance for the vehicle; 3. Value-Added Tax (VAT): This is levied on the added value of goods during circulation and is usually already included in the purchase price; 4. For imported vehicles, a certain amount of customs duty is also required. Regulations on taxable vehicle price calculation: 1. For self-purchased taxable vehicles by taxpayers, the taxable price is the full amount actually paid to the seller, excluding VAT; 2. For self-imported taxable vehicles by taxpayers, the taxable price is the customs duty-paid price plus customs duty and consumption tax; 3. For self-produced and self-used taxable vehicles by taxpayers, the taxable price is determined based on the sales price of similar taxable vehicles produced by the taxpayer, excluding VAT; 4. For taxable vehicles obtained through gifts, awards, or other means by taxpayers, the taxable price is determined based on the price stated in relevant documents at the time of purchase, excluding VAT.
Don't underestimate the taxes when buying a new car. I remember when I picked up my car last year, the purchase tax was the most noticeable—it's calculated at 10% of the invoice price. My car cost just over 200,000 yuan, so I paid 20,000 yuan in taxes. VAT is usually included in the car price, but it feels like a big extra expense when paying. The vehicle and vessel tax is an annual payment, tiered based on engine displacement—for my 1.5T, it's a few hundred yuan a year. For imported models, there's an additional tariff, which can double the tax rate, easily pushing total taxes over 15%. Opting for smaller-displacement cars not only saves on environmental taxes but also reduces the vehicle and vessel tax. Before buying, negotiate with the dealer on pricing and ask about tax details—some brands offer promotions like free insurance, which can help offset costs. Don’t just focus on the base price and overlook these expenses.
