According to the website of the Ministry of finance, recently, the Ministry of Finance and the State Administration of Taxation issued the announcement on specific policies related to vehicle purchase tax. The total price actually paid by the taxpayer to the seller for purchasing taxable vehicles for its own use shall be determined according to the price specified in the relevant certificates when the taxpayer purchases taxable vehicles, excluding value-added tax. The policy shall come into force as of July 1, 2019.
The announcement made it clear that Metro, light rail and other urban rail transit vehicles, wheel special mechanical vehicles such as loaders, graders, excavators and bulldozers, as well as cranes (cranes), forklifts and electric motorcycles, do not belong to taxable vehicles.
Taxable vehicles imported by taxpayers for their own use refer to taxable vehicles directly imported by taxpayers from abroad or imported by entrusted agents for their own use, excluding imported vehicles purchased within China.
The announcement makes it clear that the taxable price of taxpayers' self-produced taxable vehicles for their own use shall be determined according to the sales price of similar taxable vehicles (i.e. vehicles with the same vehicle configuration serial number), excluding value-added tax; If there is no sales price of similar taxable vehicles, it shall be determined according to the constituent taxable price. The calculation formula of component taxable price is: component taxable price = Cost & times; (1 + cost profit margin); For taxable vehicles subject to consumption tax, the consumption tax shall be added to the taxable price.
The cost profit margin in the above formula shall be determined by the State Administration of Taxation and the tax bureaus of all provinces, autonomous regions, municipalities directly under the central government and cities specifically designated in the state plan.
The announcement clearly states that the urban public transport enterprises whose buses and trams purchased by urban public transport enterprises are exempted from vehicle purchase tax refer to the enterprises recognized by the competent Transportation Department of the people's government at or above the county level, who have obtained the urban public transport operation qualification according to law, provide public transport services for the public, and are included in the list of urban public transport management departments and urban public transport enterprises; Public electric vehicles refer to vehicles designed and manufactured for the transportation of passengers, including buses, trolleybuses and trams, which operate according to the specified line and station fares, are used for public transport services.
The announcement points out that if the vehicles that have gone through the tax exemption and reduction procedures are no longer within the scope of tax exemption and reduction due to transfer, change of purpose and other reasons, the taxpayer, the time of tax obligation and the amount of tax payable shall be implemented in accordance with the following provisions:
（1） In case of transfer, the transferee shall be the taxpayer of vehicle purchase tax; If there is no transfer, the vehicle owner shall be the vehicle purchase tax taxpayer.
（2） The time when the tax obligation occurs is the date when the vehicle is transferred or the purpose is changed.
（3） The calculation formula of tax payable is as follows:
Taxable amount = the taxable price determined at the time of initial tax declaration & times; (1 - service life & times; 10%) & times; 10% - tax paid
The amount of tax payable shall not be negative. The service life is calculated from the date when the taxpayer first handles the tax declaration to the date when the situation no longer falls within the scope of tax exemption and reduction occurs. The service life is rounded off, and those less than one year are not included.
The announcement also makes it clear that vehicles with vehicle purchase tax are returned to vehicle production or sales enterprises. If taxpayers apply for vehicle purchase tax refund, the calculation formula of tax refund is: tax refund = tax paid & times; (1 - service life & times; 10%). (the amount of tax refundable shall not be negative) the calculation method of service life is from the date when the taxpayer pays the tax to the date of applying for tax refund.