What taxes are required for a car?
2 Answers
Taxes required for a car include: 1. Vehicle purchase tax: This is mandatory when buying a car, with a standard 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): Levied on the added value during the circulation of goods, usually already included in the car's purchase price; 4. For imported vehicles, a certain amount of customs duty is also required. The license plate registration process after purchasing a vehicle consists of: 1. Obtaining the vehicle qualification certificate; 2. Keeping the triplicate purchase invoice properly; 3. Paying the vehicle purchase tax and obtaining the tax certificate copies; 4. Registering and inspecting the vehicle at the vehicle management office; 5. Selecting the license plate number; 6. Installing the plate after payment.
As an average car owner who just bought a new vehicle last year, I'd like to discuss the taxes involved with car ownership. The main one is the vehicle purchase tax, which adds about 10% of the car's price during purchase and is directly included in the down payment. Then there's the annual vehicle and vessel usage tax, calculated based on engine displacement—smaller engines pay less. My 1.5L engine costs a few hundred yuan per year, and it's important to pay on time at the DMV or online. There are also environmental-related fees; if your car fails emissions standards, like older models below China V, you might need to spend extra on upgrades. My advice: always calculate these taxes into your total budget before buying—don't just focus on the sticker price, as actual costs can be thousands higher. Additionally, daily fuel expenses include a gasoline tax, which indirectly increases spending. I recommend checking with dealers about tax incentives, as some energy-efficient models qualify for purchase tax reductions—every bit helps. Overall, these taxes fund road maintenance and environmental efforts, making them worthwhile, but smart budgeting ensures they don't strain your wallet.
