What Taxes Need to Be Paid When Buying a Car?
1 Answers
Taxes to be paid when buying a car: consumption tax, value-added tax, purchase tax, and vehicle and vessel tax. The following is a partial introduction to the taxes required for car purchases: 1. Consumption Tax: The purchase tax often mentioned when buying a car is actually an excise tax, while in reality, car manufacturers also pay taxes when producing vehicles, including the consumption tax, which is an indirect tax. 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 added value generated during the circulation of goods (including taxable services). 3. Purchase Tax: The Ministry of Finance issued a document on September 22, 2016: from January 1, 2017, to December 31, 2017, a 7.5% vehicle purchase tax rate was applied to passenger vehicles with a displacement of 1.6 liters or less. 4. Vehicle and Vessel Tax: The vehicle and vessel tax, also known as the vehicle and vessel usage tax, is a usage behavior tax levied on vehicles traveling on public roads and vessels navigating domestic rivers, lakes, or ports, calculated based on their type (such as motor vehicles, non-motor vehicles, passenger cars, cargo trucks, etc.), tonnage, and specified tax rates.
