Q：A car sells for ￥500,000 in Dubai ,how much would cost if it's imported to China?
A：1,200,000 RMB !
Q：What's the reason ?
A：Because there's a secret inside the amazing price which we don't know . Well, it's the tax !
When talking about the imported car，we should realize that three taxes are involved :
Tariff , Consumption Tax and Value-Added Tax.
Explaination :
1 .Tariff：
A customs duty on the import or export of goods in international trade.
2. Consumption Tax：
A tax on the purchase of a good or service.
For imported car, that tax rate depends on its displacement and brand.
3. Value-Added Tax：
a type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale.
Let us see the formula below :
You would be more clear after looking the chart below：
So,let’s calculate together:
That`s why an imported car become so expensive in China.
Q : Imported goods should pay twice Value-Added Tax to both the Custom Office and the IRS?
A : According to the related laws, the Value-added Taxes of imported goods are all only collected by Custom Office.
But we should know that, the market competitions are firece, and the policies of import are still optimizing , China would catch up with the world market in the future .
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