Last checked : 25/04/2017
FAQs - VAT when buying or selling a car
I live in Belgium and want to buy a new car in the United Kingdom. I know that I will need to go through Belgian customs and pay Belgian VAT. My sales receipt is in pounds sterling. How will VAT be calculated, since I will be paying it in a country that uses the euro?Customs will convert the price paid in pounds sterling to euros. You will pay VAT at 21% of that amount (the rate applicable in Belgium).
Customs will use the value of the pound against the euro on the date shown on your sales receipt. If there is no sales receipt, it will use the date on the purchase order.
The car I want to buy is three months old and already has 3 500 km on the odometer. It's being sold to me as a new vehicle. Is this legal?YES - A car sold in the EU is considered new if:
— you take possession of it less than six months from the date it first went on the road
— the vehicle has been driven less than 6,000 km.
I bought a new car in Italy and paid VAT there. I live in France and now I want to register the car here. To do that, the French authorities are asking me to pay VAT in France. Is this normal?YES - if you buy a new car, you have to pay VAT in the country where you register it. In your case, this would mean paying VAT twice on the car. But you are entitled to a refund of the VAT you paid in Italy.
You should send a proof of payment of the French VAT to the Italian seller and request the refund of the VAT you paid in Italy. If the seller refuses to reimburse you the VAT, you can take this up with the Italian tax authority .