How to calculate purchase tax

The algorithm of purchase tax: purchase tax = total purchase price ÷ (1+17%) ×10%. Purchase tax is the act of purchasing related property within the tax system set by the tax authorities, and the tax levied on the property. Automobile purchase tax is also a special tax levied on units and individuals who buy cars. It is levied on the basis of the purchase price. The higher the price, the higher the levy. Low price, low collection.

legal ground

Article 9 of the Measures for the Administration of Vehicle Purchase Tax Collection

The taxable value of vehicle purchase tax is determined according to the following circumstances:

(1) Taxpayers purchase taxable vehicles for their own use, and all the extra expenses paid by taxpayers to sellers at taxable value for purchasing taxable vehicles do not include value-added tax;

Taxable vehicles imported by taxpayers for their own use:

Taxable value = dutiable price+customs duty+consumption tax.

(3) If taxpayers purchase or import taxable vehicles for their own use and declare that taxable value is lower than the lowest taxable value of the same type of taxable vehicles without justifiable reasons, the lowest taxable value approved by State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) shall be taxable value.