What Taxes Are Paid When Buying a Car?
1 Answers
Taxes to be paid when buying a car include consumption tax, value-added tax, purchase tax, and vehicle and vessel tax. Here is a partial introduction to the taxes paid when buying a car: 1. Consumption Tax: The purchase tax often mentioned when buying a car is actually an extra-price tax, while in reality, automobile manufacturers also have to pay taxes when producing cars, including the consumption tax, which is an intra-price tax. The automobile consumption tax is a new tax category established during the national tax system 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 vehicle types and engine displacements, and this tax is levied on manufacturers. 2. Value-Added Tax: The current value-added tax system is based on the "Provisional Regulations of the People's Republic of China on Value-Added Tax" (State Council Order No. 134) promulgated by the State Council on December 13, 1993. Value-added tax refers to a turnover tax levied based on the value-added amount generated during the circulation of goods (including taxable services). Selling goods or providing processing, repair, and replacement services, as well as importing goods and providing tangible movable property leasing services, are subject to a 17% tax rate, which applies to automobile sales.
