Purchasing for non EU resident

sunline

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Melbourne Australia
#1
I'm looking to head to Europe to purchase a Bimmer.

Can someone please help me get my head around the VAT non payment issue.

If I'm a non EU resident does that mean I don't have to pay VAT when I purchase the car?
Does VAT also apply on used cars ie is that also a figure I can reduce.

If this is the case is Belgium the best place to purchase a bimmer or should I head straight to Germany or elsewhere?

Thanks
 

Ben

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#2
i dont know about all that VAT stuff, but i think the best place would be munich because thats where theyre all put together. bimmer capitol of the world.
 

sunline

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#3
Not necessarily,

European Union law states that anybody who lives in the EU can buy a car from any EU country but only has to pay the VAT (Value Added Tax - not sure what its called in your neck of the woods) in the country that the car is registered.

Because the VAT in Belgium and Netherlands is a lot higher, around 40% I believe, than say England at 17.5% then BMW 'sells' its cars to dealers in Belgium at a lower rate than England.

So what a few Poms (English) do is simply hop over the channel a purchase the same BMW for a considerable saving, 5000 pounds is not uncommon, on what the same list price is in England and then register it and pay the VAT when they get home.

Not sure what the tax rate is in Germany but speaking to a few German guys, including one who infact works at BMW in Munich, Germany isn't the most cost effective country in Europe to buy a new BMW because of their tax rate even if some of the cars are manufactured there.

Hope this doesn't confuse you as it does me.
 
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#4
tax rate in germany is 16%.

i think that when you buy something in a country you have to pay the tax, no matter what. then, when you leave the country, you can have it refunded. then, when you import the purchased good to your own country, you just have to do custom clearance. that is at least how it works for tourists. as far as cars are concerend i believe it will not be any different.

buying a car private would save you the VAT as private deals do not need to be taxed that way. the only thing you have to do is clarifiy with the australien gov about customs and duties.

i am curious if it is really that mucgh of a saving to buy a car here in germany. you do have to consider transportation, insurance and stuff...how about a technical approval that the german spec car is allowed on australian roads? did you check that as well?
 


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