Car Export: Reclaim VAT Deposit

Refund of VAT on Car Exports Abroad

Many car buyers from abroad who have purchased a vehicle in Germany face the problem of having to deposit VAT as a security deposit when purchasing a vehicle. Especially in the case of exports to other EU countries or third countries, car dealers often promise to refund this deposit after proof of export has been provided. However, in many cases, repayment is refused – often unjustifiably. In this article, we explain when VAT is waived, which documents are required, and what to do in the event of a dispute. We shed light on the legal foundations, clarify typical problems, and provide practical solutions to successfully reclaim the deposit.

When is VAT Retained as a Deposit?

VAT is retained if the tax liability is expected to be waived, but written proof of export must be provided.

• Legal Basis: § 6a Value Added Tax Act (UStG)
• Purpose of Security: If the export is not proven, the dealer remains obliged to pay the VAT.
• Process: The dealer issues an invoice in which the VAT is shown as a deposit. The buyer must later prove the export with the necessary documents.

VAT on Car Exports to Other EU Countries

The export of a vehicle to another EU member state is exempt from VAT if certain conditions are met. Documentation obligations are crucial to benefit from the tax exemption.

Requirements for Entrepreneurs

• The buyer must be an entrepreneur or a legal entity.
• A valid VAT identification number (VAT ID) of the buyer is required.
• Legal Basis: § 6a Para. 1 Sentence 1 No. 2 a) and b) UStG

Special Feature for Private Individuals

• VAT exemption only applies to new cars.
• Used cars are still subject to VAT.
• Definition of New Cars: Vehicles that have been driven less than 6,000 km or are not older than six months.

VAT on Car Exports to Third Countries

When exporting to third countries, the VAT obligation is waived regardless of whether the buyer is an entrepreneur or a private individual.

Proof Obligation

• Proof that the vehicle has actually left the EU.
• Submission of an export confirmation from the border customs office or an exit note for ATLAS exports.
• Supplementary Requirements: Depending on the country of destination, further documents may be required, e.g., customs certificates.

Refund of the VAT Deposit

The deposit must be refunded if the VAT liability is waived. Proof of export is required for this. It is important that the evidence is provided on time and in full.

Required Documents for Proof

Export within the EU

• Proof of identity of the buyer (e.g., identity card, commercial register extract)
• Valid VAT ID number (for entrepreneurs)
• Confirmation of export to the country of destination (e.g., delivery note, confirmation of arrival/Gelangensbestätigung)
• Additional Notes: Proper invoicing with a reference to the intra-Community supply is also necessary.

Export to a Third Country

• Proof of identity (identity card or commercial register extract)
• Export confirmation from the border customs office or ATLAS exit note
• Important Details: The customs certificate must clearly confirm the departure from the EU.

Problems with the Refund of the VAT Deposit

Many dealers unjustifiably refuse to refund the deposit. Common reasons are:

• Missing or incomplete evidence
• Mere unwillingness of the dealer
• Misleading: Some dealers incorrectly claim that further documents are required to delay the process.

Legal Steps in Case of Dispute

If the dealer refuses the refund, those affected should consider legal steps.

Procedure in Case of Dispute

• Document all claims and evidence.
• Reminders: Send a written request with a deadline.
• Involvement of a lawyer: In case of default, the dealer must bear the legal costs.
• Lawsuit: In serious cases, judicial enforcement may be necessary.

Conclusion

Refunding the VAT deposit on car exports can be complicated, but it is clearly regulated by law. It is important to submit all necessary evidence correctly and promptly. In case of problems or refused refunds, you can seek legal support. Our team is at your side with competent advice and committed representation.