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View Full Version : Question for EU members: saving € € by buying in the US?



Michal12
September 13th, 2007, 09:19
Given the current Euro US dollar exchange rate prices are very good in the US.
I am aware of all the hassle of conversion and VAT and customs duty issues.
But can one avoid paying EU customs duty (10% from US, I think this is the same in the whole EU) by going for European delivery?? You would pick up the car in Germany and than only pay VAT on top of US price. Is that possible? Would US dealer agree to accept order like this?

jonas21
September 13th, 2007, 09:24
Simpel answer: No.

Long answer: If a dealer from the US buys the car (which for the new RS6 might not be possible) they will not charge EU Vat but only if the car is actually exported to the US. Thus the car will atleast be shipped to the US. However you can re-import it to the EU. But you will have to pay duties/taxes for the car. (Note: i do not mean VAT!).

Michal12
September 13th, 2007, 09:44
But what if the car stays in the EU? THey will than charge VAT but there should be no import duty, right?


Simpel answer: No.

Long answer: If a dealer from the US buys the car (which for the new RS6 might not be possible) they will not charge EU Vat but only if the car is actually exported to the US. Thus the car will atleast be shipped to the US. However you can re-import it to the EU. But you will have to pay duties/taxes for the car. (Note: i do not mean VAT!).

jonas21
September 13th, 2007, 10:14
Well you could let them ship the car to a country outside of the european union. Then they will not charge VAT according to the sixth EU VAT directive. However the company outside the EU will then charge VAT to you if you purchase it there. They then might charge local VAT, this depends on the country laws since they would not be bound to EU law.
I am not sure if this is at all legal.

What most people do is to buy cars in countrys that have lower VAT than in their own. This can be around 5-6%. For example Luxembourg has 16% VAT compared to 19% in germany.
However most dealers know this an will give you quite some lower prices if you tell them that you have an offer from a dealer outside the country. Alot of people that live near borders do that to get nice discounts.

Michal12
September 13th, 2007, 10:48
Jonas, you are right but what you say does not answer my questions. This is not about avoiding VAT. It cannot be done. But I wanted to avoid import duty from US because VAT is calculated from car value including import duty (hence 110% of US price).

Well you could let them ship the car to a country outside of the european union. Then they will not charge VAT according to the sixth EU VAT directive. However the company outside the EU will then charge VAT to you if you purchase it there. They then might charge local VAT, this depends on the country laws since they would not be bound to EU law.
I am not sure if this is at all legal.

What most people do is to buy cars in countrys that have lower VAT than in their own. This can be around 5-6%. For example Luxembourg has 16% VAT compared to 19% in germany.
However most dealers know this an will give you quite some lower prices if you tell them that you have an offer from a dealer outside the country. Alot of people that live near borders do that to get nice discounts.

Michal12
September 13th, 2007, 10:49
Basically the question is whether import duty is derived from "origin of a car" or "place of purchase of a car"


Jonas, you are right but what you say does not answer my questions. This is not about avoiding VAT. It cannot be done. But I wanted to avoid import duty from US because VAT is calculated from car value including import duty (hence 110% of US price).

ott
September 13th, 2007, 12:19
At least in my country you cannot register US Spec car without noise and emission tests.

In case of more expensive cars the price difference is big enough, that even after paying 10% duty, it makes sense to buy US Spec car from States and import it into EU.

AuditudeA642
September 13th, 2007, 16:21
I have my full US Spec Volvo S80 registered in Greece and they gave me no problem at all. I literally sent the car from US and picked up in Athens from port and left.

Mori
September 13th, 2007, 16:33
Price difference for a C Z06 bought in Poland vs. US import:

~80.000 euros vs. ~50.000

This is INCLUDING VAT and all other import taxes.

Thrives
September 13th, 2007, 17:06
Besides ...

The USD will reassert itself against the Euro over the autumn ... at least this would be my call.

ott
September 13th, 2007, 21:10
I would check warranty issue, are US Spec cars covered in Europe ?

Mori
September 13th, 2007, 21:52
I would check warranty issue, are US Spec cars covered in Europe ?

Not over here they aren't.

AuditudeA642
September 14th, 2007, 14:14
no warranty on US spec cars but they will service them for a costly price.