What Taxes Need to Be Paid When Buying an Imported Car?
2 Answers
Taxes to be paid when purchasing an imported car: customs duty, consumption tax, and value-added tax. Here is an introduction to the taxes for buying an imported car: 1. Standard: Imported cars are taxed based on the actual transaction price in principle. The price determines the amount of tax, but of course, the customs will verify the transaction price to prevent intentional price reduction for tax evasion or avoidance. If there is a discrepancy with the market benchmark price, the customs will require the use of their assessed price as the standard. 2. Preferential tax rate: This rate refers to the import tariff rate, which can be enjoyed by cars imported from most-favored-nation countries, i.e., countries that have signed reciprocal trade agreements with each other.
I remember when I bought an imported car a few years ago, taxes were really a big chunk. The tariff was the first to pay, depending on the car price and model, and my German car had a tariff rate of about 15%. VAT also had to be paid, a nationwide unified 13%, which couldn't be avoided. The consumption tax was even more critical, calculated based on the engine displacement. For example, a 3.0L engine would be much higher, and at that time, my car had a smaller displacement, so I spent a bit less. These taxes combined could account for more than 30% of the car price, so you need to calculate your budget in advance when buying. There's also a vehicle purchase tax to be paid when registering a new car, don't forget that. To save money, I recommend choosing an imported car with a small displacement or a new energy vehicle, as those have lower taxes. Overall, imported cars have heavy taxes but reliable quality, and whether it's worth it depends on your budget.
