The Vat is already included in the price / already paid previously and it's non recoverable You can recover the Vat on a classic car because the purchase was financed? As you noted above, the Vat is applied if it was recovered at some point, otherwise the price already includes it. Also valid for used parts. http://www.elatos.net/REGIME_BENI_USATI.pdf
For a classic car, the initial purchase (which has included the original VAT) is typically a long time ago, which indeed makes it non recoverable - however, it could have been recently imported from outside the EU, which would have made a new VAT appear (for which standard rules would apply).The same way, I believe a VAT on margin would also apply on a classic car.
OK. So, in the context of the tariffs, the EU Vat is charged when the car is imported. It wouldn't be charged if the car was from within the EU, unless the Vat had been recovered at some point. The Vat is reduced and the duty waived on classic cars (at least in some EU countries), but otherwise anything imported gets the full 30%+ tacked on. I guess for Hungary it's more like 40%. Crazy stuff.
That actually depends. When I lived in Arizona you didn't have to pay sales tax if you bought from a private seller. Only if you bought from a dealer. Here in Florida we pay sales tax no matter who we buy it from.
Ok. Some states have minimums for private sales, etc. Just trying to point out that the EU (national) Vat functions like a tariff because it's charged when the car is imported and it doesn't apply to local cars (unless the Vat was previously reclaimed). The US (state) sales tax doesn't work like a tariff, because it's not charged when the car is imported and it applies to local cars as well. The EU reduced Vat on classic cars is a rare occurrence. For comparison, when you buy F parts from the UK and import them into the US, you have a $800 threshold, and around 5-10% customs. Same parts going to the EU, no threshold, and 30%+ customs fees. Like I said, the EU is playing the victim while cashing in.
US sales tax at the state and county level is due when a car is imported. I imported two cars this year, both paid 10% consumption tax in Japan (back in 2023 as well) and documented on the sales invoices, and Florida still charged sales tax when I brought them here. I'm not aware of any state charging sales tax on a domestic sale, but excluding an import. When I registered my AZ car in FL, I didn't have to pay sales tax as it was already over a year in my possession with state tax already paid when I bought it new in 2003. So they made the distinction of foreign sales tax vs domestic. Edit: For example https://helpcenter.taxcollector.com/hc/en-us/articles/26723265804429-Out-of-Country-Title-Transfer-Importing-a-Vehicle-into-the-US
From the link above "and register/title it in Florida". In the EU, the car being imported wouldn't clear customs without paying the Vat. On the other hand, if you were relocating and you had already owned the car for 6 months you wouldn't need to pay that. Were the JP cars registered in your name while you were residing there and then you imported them or you bought them while residing in the US? Did you pay any customs fees?
That 6 months for FL only applies if it was titled/registered in another US state, not a country. I bought the cars in 2023 being the US. Florida doesn't care how much you paid in taxes to another country and if in your name or not there. I was with a couple Canadian couples at a FL state inspection office for imports and they told me they had to pay sales tax again on the imports and regretting not just selling their cars in Canada and buying something else in FL given the hassle of import. I had to pay US import duties (2.5% last month and Januar) on top of port fees as far as other taxes in addition to the 6%+ FL sales tax. It worked out to about 20% taxes on each car including Japanese taxes.
Sounds like your fiscal residence was in the US when you bought the JP cars. If you didn't have to pay customs, would you still have to pay the sales tax ... maybe, because it wasn't paid in another US state. But what if you exported a car to JP, were a fiscal resident there for a while, then relocated back to the US and brought the car with you.
I paid import tax to US Customs. A JDM importer I know just sent me this. Said it's real hope so!!! Image Unavailable, Please Login Edit: @JAM1 any way you can contact people to see if this is true? I know you used Cargolux recently.
I asked CARS and Cargolux this afternoon where tariffs are at related to vintage. Only CARS got back so far and said: “Unfortunately, we don't have detailed information if the executive order will include "vintage" cars. At this time, the proclamation refers to "all" cars.”
There is no “vehicle use tax” in Oregon. Registration is a flat fee that varies slightly by county, but is around $150-200 for 2 years. That is it.
Update. Cargolux got back and said: “As of today’s policy revisions cars 25 years and older remain at 2.5% duty. Of course this is subject to change.”
CARS got back to me and said the same! Ikuko based in SF who did my January import said CBP told them that tonight. Hopefully it stays that way as I asked her for a quote to import another.
I’m in a similar position so it matters if it’s 2.5 vs 25%. I suppose if it’s an inexpensive car it’s one thing but in the millions it really starts to skew the numbers!
Good news on the 25 year exemption! Clearly not good news for Euro automakers of new cars. I guess we will find out the price elasticity of modern Ferrari and other high end stuff. That’s for another thread I guess.
Read it more closely. That’s only for new cars purchased outside the state. And it is 0.05% anyway. I’ve never had to deal with that— but then I rarely buy new cars.
To demonstrate how stupid and damaging this Trump tariff idiocy is - I have a package of some parts from the UK that has sat in NY Customs for near ten days, only now to be released by DHL for delivery after I pay the duty. This morning, DHL announced they will no longer deliver any private package to the US valued over $800, because the customs paper work has suddenly become overwhelming. Be careful ordering. Governance by ignorant fools led by the chief fool.
Follow up. I got charged 15% tariff on my parts order - $260 added expense - for parts tariff which was not supposed to take effect until May 1. For those who think tariffs will not influence inflation, take your head out of the sand.
You've always had to pay duties in the past on orders. Sometime customs waived it, sometimee you pay. Usually small amounts they don't bother. Honestly, I don't see the big deal here, aside from the DATE.
For a similar value order in the past, the duty if any, would yes be small, maybe 2.5%, typically $60, never paid anywhere near $100. This is significantly different and much more. Yeah, $200 increase is a big deal to me. Ferrari stuff is expensive enough, and I don't like getting screwed even more than the Ferrari world delivers routinely. I do much of my own work - over multiple parts orders in time, unproductive extra charges from ignorant policy pile on to the budget.
