What Taxes Need to Be Paid When Buying an Imported Car?

[Orlando]

When purchasing an imported car, you need to pay tariffs, value-added tax, consumption tax, and purchase tax. Tariffs, value-added tax, and consumption tax are paid by the dealer, while the consumer only needs to pay the purchase tax. Here is some relevant information about imported cars: 1. Precautions when inspecting an imported car: When inspecting a car, customers should try to choose a car sales company with a certain scale of operation and reliable business conditions. It is also necessary to confirm whether the car being inspected belongs to the company to avoid transactions of a "stitching" nature, which may cause unnecessary trouble during the subsequent car purchase process. 2. Precautions when placing an order for an imported car: After deciding on the car to purchase, the customer should sign a sales contract with the dealer. The contract should include the brand, model, specific configuration, color, chassis number, and engine number of the car. It should also specify the payment method, delivery period, specific date and location of delivery, and the penalties for breach of contract by both parties.

[AlyssaAnn]

Last time I helped my cousin pick up an imported car and realized how complicated the taxes are. The most basic is the tariff, which varies significantly depending on the country of origin—for example, cars made in the U.S. now face a 27.5% rate. The consumption tax is even more striking, charged in tiers based on engine displacement—my cousin’s 3.0T model had to pay 12%. Add to that a 13% VAT, and these three taxes combined can add over 100,000 RMB to a 200,000 RMB car price. Finally, there’s a 10% vehicle purchase tax, all calculated based on the ex-factory price. The customs valuation step is crucial—remember to keep the purchase invoice and shipping documents to avoid overpayment on taxes.

[LawsonLynn]

Over the years of dealing with parallel-imported vehicles, I've noticed many customers underestimate tax costs. Beyond the base car price, mandatory taxes include approximately 25% basic customs duty and consumption tax levied progressively based on engine displacement. The most frequently overlooked is the 10% vehicle purchase tax calculated on the dutiable value. Two additional reminders: Imported vehicles must bear Chinese labels, with relabeling service fees around 2,000 RMB; failure to pass 3C certification may result in return shipment. Always request a detailed tax breakdown from dealers before signing contracts. For used imported vehicles, note the additional 30% luxury tax.

[LeJocelyn]

Import car taxes actually change with national policies. Last year when procuring German cars for the company, the tariff was reduced to 15% due to trade agreements. However, vehicles above 2.5L still incur a 9% consumption tax, and the purchase tax exemption for electric vehicles might be canceled next year. Also pay attention to certificates of origin - ASEAN imports enjoy zero tariffs. New energy vehicles are temporarily exempt from purchase tax but still subject to VAT. Shipping insurance fees and port handling charges are also included in the dutiable value. It's recommended to directly check the latest HS code on the General Administration of Customs website rather than trusting car dealers' verbal quotes.