What Taxes Are Levied on Imported Cars?
2 Answers
Imported cars are subject to the following taxes: 1. Tariff: For vehicles with an engine displacement below 3 liters (excluding 3 liters), the rate is 34.2%, and for those above 3 liters, it is 37.6%; Tariff Payable: Customs Declared Price * Tariff Rate. 2. Consumption Tax: For vehicles with an engine displacement below 1.0 liters, the rate is 3%, and for those between 1.0 and 2.2 liters or above, it is 8%; Consumption Tax Payable: (Customs Declared Price + Tariff) / (1 - Consumption Tax Rate) * Consumption Tax Rate. 3. Value-Added Tax (VAT): The rate is 17%; VAT Payable: (Customs Declared Price + Tariff + Consumption Tax) * 17%. 4. Customs Clearance Fees: 10% Dealer Fees: Other costs (such as fees incurred by non-tariff measures like import licenses). For example, for an imported car with a customs declared price of 100,000 RMB, the tariff (calculated at 34.2%) would be 34,200 RMB, the consumption tax (calculated at 5%) would be 7,100 RMB; the VAT would be 24,000 RMB; the total tax-inclusive price would be 165,300 RMB; and the market price would be approximately 200,000 RMB.
As an ordinary car owner who has purchased an imported vehicle, let me explain the tax situation. There are three main taxes for imported cars: tariff, value-added tax (VAT), and consumption tax. The tariff is calculated as a percentage of the vehicle's value, typically around 10%, and must be paid at customs upon import, significantly increasing the car's price. The current VAT rate is 13%, applied uniformly to all goods, and is calculated based on the value including the tariff. The consumption tax depends on engine displacement—for example, smaller engines below 1.5L have lower rates, while those above 2.0L can be as high as 25%. This tax is also factored in when purchasing the car. I remember buying an imported SUV priced at 300,000 RMB; after adding these taxes, the cost increased by over 100,000 RMB, which really impacted my budget. I recommend calculating the total price, including taxes, before buying to avoid overspending. Additionally, some countries have extra taxes, but in China, these three are the main ones. If you're not careful, taxes can lead to unnecessary expenses and affect long-term ownership costs. In short, always budget for taxes—don't just look at the base price.
