What taxes are required for a new car?
2 Answers
Taxes required when purchasing a new car: 1. Tariff: Tariff refers to the tax levied by the customs authority set up by the government on importers and exporters when goods pass through the country's customs territory. Domestic cars do not require tariff payment, while imported cars are subject to certain tariffs. 2. Consumption tax: Consumption tax is a general term for various taxes levied on the turnover of consumer goods. Currently, China's automobile consumption tax rates are divided into different tiers based on engine displacement. 3. Value-added tax (VAT): VAT is a turnover tax levied on the added value or commodity value-added at various stages of production, circulation, and labor services. 4. Vehicle purchase tax: Vehicle purchase tax is a tax levied on units and individuals purchasing specified vehicles within the country. The vehicle purchase tax varies depending on the time period of implementation. 5. Vehicle and vessel tax: Vehicle and vessel tax is a behavioral tax calculated and levied based on the type, tonnage, and prescribed tax amount for vehicles traveling on public roads and vessels navigating domestic rivers, lakes, or territorial ports. As a local tax, vehicle and vessel tax prices vary by region.
As an ordinary car buyer sharing my experience, the main tax encountered when purchasing a new car is the vehicle purchase tax, which accounts for 10% of the car price, calculated based on the invoice price excluding VAT. For example, the car I bought for 150,000 yuan had a tax of approximately 15,000 yuan. The 13% VAT is usually included in the car price, so there's no additional payment. For imported cars, there's also a customs duty, with the rate depending on the origin of the model, such as higher rates for those from Europe and America. The salesperson mentioned that luxury cars might come with a consumption tax, but ordinary family cars don't. Paying the purchase tax is a must before picking up the car; you need to bring your ID card to the tax office, and the procedure is simple, taking about half an hour. You can't get your license plates and drive the car until the tax is paid, or you'll be stuck. I recommend setting aside this part of the money before buying a car, not just focusing on the car price and forgetting the costs. After that, there's an annual vehicle and vessel tax, but that's part of the renewal fees.
