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VAT tax question about European used car purchase

Discussion in 'Ferrari Discussion (not model specific)' started by 348SStb, Feb 23, 2010.

  1. 348SStb

    348SStb F1 Rookie
    Owner

    I'm asking the guys in this General forum to lend a hand. I know the thread properly belongs in the European forum but I understand there may be a language barrier there.

    I would like to know how the VAT tax would work for someone purchasing a *used* Ferrari in Europe to be registered legally at an address in Europe. Let's stay within the European Union. Say France, Italy, Germany.

    So as a resident of say, France, Germany, or Italy:

    If you want to buy a *used* car from one of these EU countries, do you have to pay the VAT tax? If so, to whom?

    -Do you have to pay VAT on a used car purchased from a dealer?
    -Do you have to pay VAT on a used car purchased from a private seller?

    Please explain. :)

    Some background information: my Dad recently purchased a house in France and he wants to buy a used Ferrari from somewhere in the Western Europe (either private or dealer); and he wants to register it in France. (He also can register it in Germany -- he has an address he can use.)
     
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  3. Dave1442397

    Dave1442397 Karting

    Feb 11, 2007
    175
    Cherry Hill, NJ
    My friend in Ireland bought his 360 in the UK. He was able to drive it for a year on the UK plates before having to register it in Ireland, at which time he had to pay the Irish registration tax of approx 30,000 euro.
     
  4. Mlody

    Mlody Karting

    Oct 5, 2009
    83
    Poland
    Full Name:
    David
    #3 Mlody, Feb 23, 2010
    Last edited: Feb 23, 2010
    In European Union you pay VAT in country where you buy the car (when buying from a dealer). I.e - If you buy the car from a dealer in Germany, you pay German VAT (the dealer have to include/add the VAT to his price).

    If you buy from a private seller, you don't have to pay any VAT.

    btw.
    Used car in europe = more than 6000km's and registered more than 6 months before selling.
     
  5. mwr4440

    mwr4440 Four Time F1 World Champ
    Rossa Subscribed

    Jun 8, 2007
    43,668
    Bavaria, The 'Other' Germany
    Full Name:
    Mark W.R.
    #4 mwr4440, Feb 23, 2010
    Last edited: Feb 23, 2010
    Not entirely true, but 95% of the time, YES. If the car was registered under a Status Of Forces Agreement (SOFA) then you took it out of that system, then "Yes" you'd have to pay the VAT.

    I am in Germany under a SOFA. If you bought the car from me and placed in under the German system, you'd pay the VAT.

    Even if you did not have to pay the VAT the seller would want most if not all it back that they paid so you'd be out (much of) the money regardless.


    Each country is a bit different.


    Denmark for example (IIRC, Cosmic KID !!! Where are you?????) you pay the auto VAT (180% of the value NOT purchase price) regardless of circumstances.


    Please check this much deeper before taking the plunge.
     

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