What taxes need to be paid for a new car?
2 Answers
When purchasing a new car, the following taxes need to be paid: 1. Purchase tax: Currently, the VAT rate is 13%, and the purchase tax rate is 10%. The calculation formula for vehicle purchase tax is: Taxable amount of vehicle purchase tax = Taxable vehicle's taxable price × Tax rate. 2. Vehicle and vessel tax: Since the vehicle and vessel tax is a local tax, prices vary in different regions. 3. Imported cars also need to pay: 15% import car tariff; 13% vehicle VAT; and import car consumption tax. The car import tax = Basic tariff (15%) + Consumption tax (3%-20%) + VAT (13%). 4. Luxury cars priced above 1.3 million yuan also need to pay a consumption tax at a rate of 10%. The calculation formula for luxury car tax is: Taxable amount of luxury car tax = Retail sales amount (excluding VAT) × Retail tax rate.
When I bought a new car, I had to pay several types of taxes, mainly including vehicle purchase tax, vehicle and vessel tax, and value-added tax (VAT). The vehicle purchase tax rate is 10%, calculated based on the car's price. For example, if you buy a car worth 200,000 yuan, you have to pay an additional 20,000 yuan in tax. The vehicle and vessel tax is paid annually, with rates tiered according to engine displacement—smaller engines cost less, ranging from a few hundred to a few thousand yuan. As for VAT, it’s usually included in the invoice price at 17%, so you’ve already paid it when purchasing the car. Additionally, if you buy an imported car, you’ll also have to pay customs duties, which can be higher, around 20% to 30%. Don’t forget vehicle registration and license plate fees, which also count as taxes. I recommend consulting the dealership or checking local policies in advance to avoid unexpected tax expenses. Overall, these taxes make up a significant portion of the car’s total cost, so be sure to budget accordingly.
