When buying a car, you have to pay the vehicle purchase tax and vehicle and vessel use tax. Vehicle purchase tax refers to a tax levied on units and individuals who purchase specified vehicles in China. It is also a tax that must be paid when buying a vehicle, but only once. If you buy a second-hand car, you generally only need to go through the purchase tax change procedures.
The calculation formula of vehicle purchase tax is: taxable price of vehicle × tax rate.
Vehicle and ship tax is a kind of property tax levied on vehicles and ships registered in accordance with the law in China. It is generally paid when vehicles are insured against compulsory traffic insurance. Therefore, the vehicle and ship tax should be paid once a year, which is mainly levied by grades according to the number of passengers.
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What taxes and fees do I have to pay to buy a car
Tax to pay when buying a car:
1、 Vehicle purchase tax. Vehicle purchase tax is a kind of tax levied on units and individuals who purchase specified vehicles in China. The taxable amount is calculated by multiplying the taxable price of taxable vehicles by the tax rate.
2、 Vehicle and vessel taxes. Vehicle and vessel tax refers to a kind of property tax levied on vehicles and vessels that should be registered in China according to law, according to their types, according to the stipulated tax basis and annual tax rate.
[Legal Basis]
Article 1 of the Vehicle Purchase Tax Law of the People's Republic of China
Units and individuals that purchase automobiles, trams, auto trailers, and motorcycles with an exhaust volume of more than 150 milliliters (hereinafter collectively referred to as taxable vehicles) within the territory of the People's Republic of China are taxpayers of vehicle purchase tax and shall pay vehicle purchase tax in accordance with the provisions of this Law.
Article 5
The taxable amount of vehicle purchase tax shall be calculated by multiplying the taxable price of taxable vehicles by the tax rate.
Article 1 of the Vehicle and Vessel Tax Law of the People's Republic of China
The owners or managers of vehicles and vessels (hereinafter referred to as "vehicles and vessels") within the territory of the People's Republic of China that are specified in the Table of Taxable Items and Amounts of Vehicle and Vessel Tax attached to this Law shall be taxpayers of vehicle and vessel tax and shall pay vehicle and vessel tax in accordance with this Law.
How much tax do you have to pay on buying a car?
The vehicle purchase tax shall be calculated by the method of ad valorem rate. The calculation formula is: tax payable=taxable price × tax rate. If the consumer buys a domestic private car, the taxable price is the total price paid to the dealer and the out of price expenses, excluding VAT (tax rate of 17%).
Because the purchase price of the special invoice for the sale of motor vehicles includes VAT tax, when calculating and collecting the vehicle purchase tax, 17% of the VAT must be removed first, that is, the taxable price of the vehicle purchase tax=the invoice price ÷ 1.17, and then the vehicle purchase tax shall be calculated and collected at the rate of 10%.
For example, if a consumer buys a domestic car worth 100000 yuan, the tax will be 10% after the VAT is removed. The calculation formula is 100000 ÷ 1.17 × 0.1=8547 yuan.
If the consumer buys an imported private car, the formula for calculating the taxable price is: taxable price=tariff dutiable price+tariff+consumption tax.
Extended data
What taxes do you pay when buying a new car
1. Consumption tax
The so-called consumption tax is a new tax set in the 1994 national tax system reform. From September 1, 2008, we will adjust the automobile consumption tax policy that is only levied on manufacturers, including increasing the consumption tax rate of large displacement passenger vehicles and reducing the consumption tax rate of small displacement passenger vehicles.
2. Purchase tax
The license plate must be registered after buying the car, but the purchase tax must be paid before the license plate is registered. If the tax is not paid, the license plate will not be registered.
The automobile purchase tax is a tax levied on units and individuals who purchase specified vehicles in China. It is derived from the vehicle purchase surcharge. The basic standard of the current automobile purchase tax law is the Provisional Regulations of the People's Republic of China on Vehicle Purchase Tax, which came into effect on January 1, 2001.
3. VAT
Every car sold to consumers through the 4S store needs to be invoiced, and the invoice includes 17% VAT.
4. Vehicle and vessel use tax
After the vehicle is licensed, the vehicle and vessel use tax shall be paid every year. The so-called vehicle and vessel use tax refers to a kind of property tax levied on vehicles and vessels that should be registered with the public security, transportation, agriculture, fishery, military and other administrative departments in China according to law, according to their types, according to the stipulated tax basis and annual tax standards. From July 1, 2007, car owners need to pay the vehicle and ship tax when insuring compulsory traffic insurance.
