Understanding EU VAT Refund on Car Purchases
If you're buying a car in one EU country and plan to export or register it in another, you may be eligible for a VAT refund. This guide explains how VAT works on cross-border car purchases, when you can get a refund, and what documentation is required.
What is VAT and How Does It Apply to Car Sales?
VAT (Value Added Tax) is included in the price of most goods sold in the EU, including cars. For new vehicles or business-to-business transactions, VAT may be refundable under intra-community supply rules.
Who Qualifies for a VAT Refund?
You may qualify for a refund if:
Please note: private individuals cannot purchase a car net of VAT (netto price) within the EU. Only VAT-registered companies are entitled to make VAT-exempt intra-community acquisitions.
However, for new vehicles (less than 6 months old or under 6,000 km), private individuals may be required to pay VAT twice — once in the country of purchase, and again in their country of registration. In such cases, they must apply for a VAT refund from the seller after registering the car locally.
- You are a business with a valid EU VAT number
- You are exporting the car outside the EU
- You are buying a new vehicle (less than 6 months or under 6,000 km)
When Do You Get the VAT Back?
The VAT is usually not charged upfront if the transaction is intra-EU and all VAT numbers are valid. Otherwise, you pay the VAT and apply for a refund after registration in your home country.
In some cases, the seller may require the buyer to pay the VAT amount as a security deposit. This deposit is held until the delivery and, in some cases, registration of the vehicle in the destination country is confirmed. Buyers should always clarify this arrangement with the seller and ensure it is clearly stated in the purchase contract.
Required Documents
Keep in mind that the purchase agreement between the buyer and the seller may contain not only the car's technical details, but also important delivery terms such as the responsibility for transport, risk transfer point, or VAT handling instructions. Make sure to review and clarify these terms before finalizing the transaction.
- Sales invoice with VAT breakdown
- Proof of export (e.g. CMR, shipping documents. In business-to-business transactions, an Entry Certificate jointly signed by the buyer and seller to confirm delivery may also be required to validate the zero-VAT supply.)
- Vehicle registration in the destination country
- Copy of buyer's VAT registration (if a business)
Common Mistakes to Avoid
- Assuming all dealers support VAT-free sales
- Failing to collect the correct documents at pickup
- Using incorrect or expired VAT numbers
- Trying to claim a refund on a private (used) car purchase
Unsure whether your purchase qualifies for a VAT refund? Contact our team for tailored guidance. We assist clients with secure documentation, dealer communication, and intra-EU compliance.