Customs duty and VAT on imported cars, explained

Customs value: what is included

The customs value of a car bought outside the EU is its transaction value plus the costs of bringing it to the EU border: auction fees, transport to the export port, ocean freight and insurance. Costs after the border – unloading, transport inside the EU – are not part of it.

• Included: price paid, auction and broker fees, inland transport in the exporting country, export handling, ocean freight, marine insurance
• Not included: EU port handling after arrival, customs agent, road transport inside the EU, registration costs

If insurance was not bought, customs may add a notional amount. If freight was paid as a lump sum for several cars, it is split per car. Invoices in dollars or yen are converted at the official customs exchange rate valid for the month of the declaration.

Duty rates

The rates are set at EU level and are the same in every member state. Classification matters: a pickup classified as a goods vehicle pays 22%, while the same model classified as a passenger car pays 10%. The collector’s rate requires the vehicle to be at least 30 years old, in original condition without substantial changes to the main components, and of historical interest; some cars also need a separate import VAT treatment, so check with a customs agent.

Import VAT

VAT is calculated on the customs value plus the duty and the transport costs to the first destination in the EU. It is paid in the member state where the car is released for free circulation, at that country’s standard rate. Some countries also charge an excise or registration tax later – these are national and differ a lot.

Standard VAT rates range from 17% in Luxembourg to 27% in Hungary; Germany charges 19%, the Netherlands and Belgium 21%, Poland 23%, Denmark and Sweden 25%. Because you pay the rate of the clearance country, the port you choose has a direct effect on the bill.

Worked example

In this example taxes add about a third to the CIF value. For a pickup at 22% duty the same car would pay 2,640 in duty and correspondingly more VAT, which is why classification is worth checking before you buy.

How clearance works in practice

1. 1The car arrives and is stored in a temporary storage area at the port.
2. 2A customs agent files the import declaration with the invoice, fee receipts, freight invoice and bill of lading.
3. 3Customs may check the documents or inspect the car.
4. 4You pay duty and VAT (often through the agent).
5. 5The car is released for free circulation and you receive the customs documents needed for registration.

Customs procedure 4200

A VAT-registered company importing a car that goes straight on to another EU country can clear it under procedure 4200: no import VAT is paid in the country of arrival, and the buyer accounts for VAT in its own country under the reverse charge. Private persons cannot use it.

Common mistakes with duty and VAT

• Calculating VAT only on the car price instead of on CIF + duty + transport to destination
• Forgetting that auction and broker fees are part of the customs value
• Assuming a pickup pays 10% like a passenger car
• Expecting a private buyer to reclaim import VAT
• Forgetting national registration or excise taxes that come after customs

The calculator applies these rules automatically and shows duty and VAT for every EU port of clearance, so you can see how the total changes with the clearance country.