Does anyone know how the new bike purchase tax works in China? Here is the latest story I have heard:

1) There is an embedded 15% VAT in the list price
2) There is a 10% purchase tax paid by the end consumer, but that is applied to the NET price (list price minus the 15% VAT)

I've been quoted (and paid) tax rates all over the map. I've even been told that taxes are on a sliding scale with bigger bikes having a higher rate (although BMW, Harley & Ducatti have different rates ... go figure).

Or, as was suggested to me by one big-bike dealer, it blends freight, prep, etc, into the list price and then strips these non-taxable items out when calculating end purchase tax.

Anyone out there know how this operates?