6.5 What is the VAT regime of a vehicle? What does it mean?
The rules relating to the Value Added Tax (better known as VAT) you pay on a vehicle are influenced by a number of factors. Where did you purchase the vehicle and where will you be selling it? Are you going outside the EU? Are you staying in the country of purchase? What is the VAT qualification of the vehicle you have purchased? It’s a complex area.
Our platform offers vehicles under normal VAT rules (normal VAT vehicles) and vehicles under margin scheme (margin vehicles). Vehicles under normal VAT rules are symbolized with “D” (D for Deductible VAT or Qualifying) on our website and margin vehicles are shown with “M” (M for Margin). The prices of vehicles under normal VAT rules are VAT excluded while for margin vehicles VAT is included in the price of the vehicle.
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Local sale (Example: German registered vehicle sold by OPENLANE Deutschland to a buyer with a German VAT number. The car stays in Germany) (All vehicles sold to a buyer with a Belgian VAT number are invoiced via OPENLANE Belgium NV as local sale.) |
EU transaction (Example: a German registered vehicle is sold and transported to Romania) |
Export (Example: a German registered vehicle is exported to Russia) |
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Normal VAT vehicle = VAT excluded in price mentioned on website |
• VAT on vehicle included on the invoice (deductible) • Costs(*) incl. VAT • VAT deductible |
• VAT on vehicle excluded on the invoice • Buyer declares VAT in destination country • Costs(*) excl. VAT (declaration) |
• VAT excluded, no VAT to be paid inside the EU • Buyer declares vehicle in import country according to local country rules • Costs(*) excl. VAT |
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See European directive EC/2006/112: art. 140 for more information. |
See European directive EC/2006/112: art. 146 for more information. |
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Margin vehicle = VAT included in price mentioned on website
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• VAT included in the vehicle price • Costs(*) subject to VAT (to be paid by the buyer) • VAT included in vehicle price and paid on costs(*) is not deductible |
• VAT included in the vehicle price • Costs(*) subject to VAT (to be paid by the buyer) • VAT included in vehicle price and paid on costs(*) is not deductible |
• VAT included in the vehicle price • Costs(*) not subject to European VAT |
| Please check the European directive EC/2006/112: art. 312 for more information. For all margin cars, a margin certificate is available as a PDF file for all Continental European customers. We declare this information on the sales invoice for UK Customers. |
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(*) Costs = all costs (country-specific costs, auction fees, transport costs, costs for paper invoice) except for the price of the vehicle.
Related questions:
How and when do I pay for the vehicle?
How can I know when you have received my payment?
