What taxes are required when buying a car?
2 Answers
Taxes required when buying a car include: 1. Vehicle Purchase Tax: This is a tax levied on individuals and entities purchasing specified vehicles within the country, and it only needs to be paid once; 2. Vehicle and Vessel Usage Tax: This is a property tax imposed on vehicles and vessels legally registered in China. It is generally paid when purchasing compulsory traffic insurance for the vehicle and must be paid annually. The tax is mainly levied in tiers based on the approved passenger capacity. If the purchased vehicle is an imported car, customs duties are also required; if the vehicle is a used car purchased from a dealer, a used car transaction tax is also applicable.
As a young person who just bought a new car, I have to say taxes are a huge expense. You have to pay a vehicle purchase tax when buying a car, which is about 10% of the new car's price. For example, a 200,000 yuan car requires 20,000 yuan in taxes. There's also the vehicle and vessel usage tax, which you pay annually—the higher the displacement, the higher the tax. Small-displacement cars might cost a few hundred yuan, while large-displacement ones can run into thousands. Don't forget that the car price already includes a value-added tax (VAT), typically around 13%, which the dealer has already factored in. Imported cars are even more of a headache, possibly adding a 15% tariff. After paying taxes, there might be additional small fees when registering the car. I recommend carefully calculating your budget before buying, prioritizing tax-exempt models like new energy vehicles or taking advantage of promotions to save money. Don't just look at the base car price—taxes can account for over 15% of the total cost, and neglecting them can lead to overspending and affect your daily life. It's best to consult the 4S dealership for a detailed breakdown to avoid financial strain after the purchase.
