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survey: car taxes around the world

Discussion in 'Ferrari Discussion (not model specific)' started by vm3, Jun 10, 2007.

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  1. vm3

    vm3 Formula Junior

    Apr 12, 2007
    728
    California
    #26 vm3, Jun 13, 2007
    True. Every system has its merits and drawbacks.
     
  2. vm3

    vm3 Formula Junior

    Apr 12, 2007
    728
    California
    #27 vm3, Jun 13, 2007
    USA - USD173,000 MSRP, plus sales tax 8.25%, license fee 2% (California).
    Canada (Ontario): 14% composed of 7% sales tax and 7% VAT.
    Australia: 360 modena in US is around 150-200 K ... in Australia 270-350 K.
    Netherlands - MSRP + 45,2% BPM (car tax) + 19% BTW (government tax)
    China - USD400,000 includes about 100% total tax and fees.
    Norway - F430 @ 420.000 USD; Mitsubishi Evolution @ 100.000 USD; Audi A8 @ 140.000 USD; BMW M5 @ 300.000 USD
    Denmark - USD 550.000, with a 180% sales tax and registering the car tax.
    Malaysia - 300% tax.
    Philippines - F430 - Php 26 million = $557,341; 599 - Php 39 million = $836,012
     
  3. Tarek K.

    Tarek K. F1 World Champ
    Rossa Subscribed

    Sep 7, 2006
    10,798
    Cairo - Egypt
    Full Name:
    Tarek K.
    #28 Tarek K., Jun 13, 2007
    Egypt: 248% Customs duties and taxes on luxury cars.
     
  4. vm3

    vm3 Formula Junior

    Apr 12, 2007
    728
    California
    #29 vm3, Jun 13, 2007
    USA - USD173,000 MSRP, plus sales tax 8.25%, license fee 2% (California).
    Canada (Ontario): 14% composed of 7% sales tax and 7% VAT.
    Australia: 360 modena in US is around 150-200 K ... in Australia 270-350 K.
    Netherlands - MSRP + 45,2% BPM (car tax) + 19% BTW (government tax)
    China - USD400,000 includes about 100% total tax and fees.
    Norway - F430 @ 420.000 USD; Mitsubishi Evolution @ 100.000 USD; Audi A8 @ 140.000 USD; BMW M5 @ 300.000 USD
    Denmark - USD 550.000, with a 180% sales tax and registering the car tax.
    Malaysia - 300% tax.
    Philippines - F430 - Php 26 million = $557,341; 599 - Php 39 million = $836,012
    Egypt: 248% Customs duties and taxes on luxury cars.

    This is very enlightening. I had no idea so many countries charge such ridiculous taxes! Americans complain about a lot and they have few social benefits, but we certainly enjoy the lowest car prices! However, the US has very high income tax -- up to 50% total tax for high incomes. So the income tax rate in other countries is also relevant to the question about car taxes.

    Further, the car factory probably makes the least money in the sales chain. In many countries, the governments make the most profits!
     
  5. Cyclenirvana

    Cyclenirvana Karting

    Feb 4, 2006
    201
    North Carolina
    Full Name:
    Ethan
    #30 Cyclenirvana, Jun 14, 2007
    Interesting link for those interested in taxes in various countries:
    http://en.wikipedia.org/wiki/Tax_rates_around_the_world
    This is no way near exhaustive as most countries have substantial gasoline taxes and even signficant taxes on liquor, cigarettes, etc...but gives you some insight.
     
  6. vm3

    vm3 Formula Junior

    Apr 12, 2007
    728
    California
    #31 vm3, Jun 15, 2007
    Thanks for that great list. It's gets me thinking about moving to the United Arab Emirates ...
     
  7. SrfCity

    SrfCity F1 World Champ

    Nov 1, 2003
    10,142
    Orange County, CA
    #32 SrfCity, Jun 15, 2007
    Hitch a ride with Haliburton ;)
     
  8. kens

    kens Formula 3
    Silver Subscribed

    Jun 25, 2006
    1,351
    #33 kens, Jun 18, 2007
    These comparisons can be misleading. In Europe for example, a 17% VAT is applied only once. In the USA, a car can pass through many owners with state sales tax applied on each sale. So, in the USA it is possible for tax revenue to go beyond what most of Europe sees.

    Clever these tax assessors. The buyer only looks at the current tax hit, we have learned to accept paying tax on each transfer.
     
  9. Artvonne

    Artvonne F1 Veteran

    Oct 29, 2004
    5,379
    NWA
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    Paul
    #34 Artvonne, Jun 18, 2007
    I dont believe this is true. I understood that any exchange, even of used materials has VAT added.
     
  10. technic_1210

    technic_1210 Rookie

    Nov 29, 2005
    11
    Dublin/Letterkenny
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    Conor
    #35 technic_1210, Jun 18, 2007
    For a 430 in Ireland you are looking at €300,000 and that is with the 21% VAT and 20% VRT included in the price.
     
  11. kens

    kens Formula 3
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    Jun 25, 2006
    1,351
    #36 kens, Jun 18, 2007

    VAT is always included in the price so it is a somewhat transparent. When I purchase in Europe, it is for export and I do not pay VAT. I do not get the VAT refund unless the car had been never been taxed. Most used cars have been taxed (consumer owned not corporate) and do not include VAT. The Value Added Tax is only charged once.
     
  12. frefan

    frefan F1 Veteran

    Apr 21, 2004
    7,370
    #37 frefan, Jun 18, 2007
    Nevada = $0
     
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