Vehicle purchase tax is a kind of tax levied on units and individuals who purchase specified vehicles in China. It is evolved from vehicle purchase surcharge.2018years12month29The Seventh session of the Standing Committee of the 13th National People's Congress passed the Vehicle Purchase Tax Law of the People's Republic of China on Wednesday. Since the2019years7month1As of today.

How to account for the purchase tax of the vehicle?

According to the Accounting Standards for Business Enterprises No4No.--Article 8 of Fixed Assets stipulates that the cost of purchased fixed assets includes the purchase price, relevant taxes and fees, transportation fees, loading and unloading fees, installation fees and professional service fees incurred before the fixed assets reach the predetermined usable state. Therefore, the vehicle purchase tax should be included in the cost of fixed assets.

When purchasing a car, the car price and vehicle purchase tax are recorded as fixed assets.

Borrow: Fixed assets

   Loan: bank deposit

The vehicle purchase tax incurred when an enterprise purchases a car related to its business is included in the fixed assets.

1  Related to business operation

2  Account for fixed assets

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.