Mercedes-Benz Forum banner
1 - 13 of 13 Posts

·
Registered
Joined
·
20 Posts
Discussion Starter · #1 ·
For those of you who ever imported directly from Germany, can anyone explain how VAT works? For example, if you go to mobile.de, many G's come up with 2 prices...a "local" price (for lack of a better word) and an "export" price, which is ~15% less. Is the difference VAT?
I'm thinking of bringing a newer truck over from the homeland and having it converted.
Thanks to anyone who has any insight.
 

·
Registered
1984 230GE SWB, 2001 CLK 200K CAB
Joined
·
129 Posts
Link that may help you one way or another,
http://www.clubgwagen.com/classifieds/import.htm
 

·
Registered
280 ges 1989
Joined
·
321 Posts
nomarkup - 4/11/2006 2:28 AM

For those of you who ever imported directly from Germany, can anyone explain how VAT works? For example, if you go to mobile.de, many G's come up with 2 prices...a "local" price (for lack of a better word) and an "export" price, which is ~15% less. Is the difference VAT?
I'm thinking of bringing a newer truck over from the homeland and having it converted.
Thanks to anyone who has any insight.
VAT or whatever its name is in Germany is re-claimed when you export something from the EU.

There are many vehicles for sale in the EU that do not have VAT in the price - those sold by private owners – and also from businesses not making enough income to have to charge VAT. In that case there would be nothing to claim back. I guess it should not really make much difference to what you pay in the end as there is a market price.
 

·
Registered
W463, 300GE
Joined
·
647 Posts
Inclusive Mehrwertsteuer = incl. VAT

If a German Business holder sell a G to another Business holder, the price is Netto = without VAT.

This is also true if the car sold outside Germany. In the EU, the buyer has to pay taxes that may differ from country to country.

If the Seller is a private person, he is not able to tell you the Netto Price.
He will be only allowed to sell Brutto = with VAT.

RGDS
Klaus
 

·
Registered
brabus G36
Joined
·
500 Posts
Klaus,
that's the opposit I was thinking about the VAT

from business to business or from business to privat there is a VAT to pay. from privat to privat or from privat to business there is no VAT to pay.

The example is only for transactions in the same country.

When a car is sold to somebody outside the country he can only recuperate the VAT from a business (because a privat persone do not charge VAT)
You can only claim the VAT when you have a customs document who claims that the car left the country.

Once you arrive in your country you pay import duties and local taxes.

in canada 6,1% import duties and than the local taxes

correct me if I'm wrong.
 

·
Registered
280 ges 1989
Joined
·
321 Posts
79percent - 4/11/2006 6:36 AM

If the Seller is a private person, he is not able to tell you the Netto Price.
He will be only allowed to sell Brutto = with VAT.

RGDS
Klaus
I am confused: In the UK if I buy from a private or non-VAT registered person there is no VAT to pay.

It’s a nightmare to follow: If a business has a turnover of less than £60,000 (2005 amount) then there is no necessity to register for VAT, if its over that amount then there is, however, one can if one wants too. The disadvantages of registering are that you have to charge your customers VAT, which in the UK is 17.5% The up side is that you can claim back VAT that you are charged on everything you buy as part of your business. And that includes Gas.

The trouble, I think, and I can only speak for the UK is that you would have to pay the VAT when purchasing something but would be able to claim it back if registered for VAT. Well that’s what has happed to me.
 

·
Registered
W463, 300GE
Joined
·
647 Posts
thats the same in Germany, so the private seller will not be able to tell you the price without VAT.

Only a business unit can sell without VAT and that is to another business unit only and/or to an outside country or Export usage.

Sorry if I confused someone.

So what does it mean. If you buy a G from a private seller, than the seller will not be able to reduce the price by selling the vehicle without VAT when it is exported. Only if you buy a G from a professional seller, than he can give you a price without VAT if you export the vehicle.
 

·
Registered
G320
Joined
·
244 Posts
If I may try to clarify a little further.

If you buy from a private seller, there is no VAT. Therefore no price reduction for export.

If you buy from a dealer, he will charge for the VAT unless you are excempt from paying the VAT, because of your status such as the vehicle being destined for export out of Germany.
 

·
Registered
2000 G300 TD
Joined
·
466 Posts
Am I correct in understanding that the VAT (BTW?)on a used car in Germany 16.5% of the total price of the car or only the profit the dealer makes on it? Or is it different if the dealer owns it or sells it on consignment?
 

·
Registered
230 G BGS 300G TDI
Joined
·
965 Posts
VAT law is very complex, and not uniform throughout the EC, when export is mentioned this applies only to a vehicle that is sold outside the EC.
If you are VAT registered and in a EC State (Country) you may take advantage of inter community trading laws which allow you to buy free of VAT from a like VAT registered person or business in another EC State, the VAT should then be payed on your normal quarterly VAT return, box 2 aquisitions from other EC member states.
However if VAT law in your resident country does not require you to pay VAT on a used private vehicle then this is one time you get a free lunch.
If it is a commercial vehicle you pay VAT on the invoice price at the rate in your own country, you can elect to pay it in the country of purchase if it is lower, but you can not claim it back in your quarterly VAT return unless you appoint a tax lawyer to act on your behalf in that country who will charge you circa 10% of the VAT recovered.
How the dealer accounts for his VAT is a whole different ball of wax.
Told you it was complex.
 

·
Registered
Joined
·
1 Posts
As good as I can

All items sold within Germany and Europe are subject to Value addes tax (VAT or IVA or MwSt.) this is some sort of sales tax.

Within a European country this tax is always paid, however on dealer to dealer sales the VAt can be reclaimed form the government in the next VAT tax declaration. If an item is sold from dealer to dealer sitting in 2 different countries in Europe that participate in the European tax ID system, the tax is not being paid ( do not laugh I did not create that rule). If a dealer sells to a private party they cannot reclaim the VAT so the VAT is paid for that good once and forever and when it is sold back to a dealer the VAT cannot be recleimed as well as within the owner's chain there was a private party.

When a car is sold outside of Europe the buyer should make sure that the car can be sold net export - without any taxes by a dealer. The selling dealer is always responsible for the VAT ! As soon as the buyer takes delivery in Europe the whole VAT deal maybe screwed up as all European governments request proof of export ( customs declaration with export stamp etc).

CFG911
 

·
Registered
230 G BGS 300G TDI
Joined
·
965 Posts
It is complex. Even more when you get to items that are vat payable in one member state and not another, or the rates vary, For example you get a better deal on a Landrover Discovery in Spain than in the UK.
 

·
Registered
04 Adventurewagen
Joined
·
616 Posts
If you purchase an item, lets say a G-wagen from a dealer, he would have to charge you the VAT. In Germany it is likely included in the advertised sales price, not like here in the US where the Sales Tax is added on.
If you take posession of the car in Germany and want to drive a bit around and then to the harbor for shippment - you will have to pay the VAT included sales price. After you clear the German Customs and have the customs declaration papers signed and stamped - the dealer can than refund you the VAT (16.5% - after Jan 1, 2007 - 19%!!!)amount, when you returned the customs export declaration papers to him. If the dealer deliveres your G-wagen direct to a shipping/freight forwarder for shippment to the US - the dealer will charge you only the sales price less VAT amount.
 
1 - 13 of 13 Posts
Top