CAR IMPORT: VAT reduced from 1 July 2020
The corona crisis has made it possible for vehicle imports from outside the EU, a lower sales tax, which applies starting from July 1st. This general reduction of the VAT is part of the 130 billion euro economic stimulus package of the German government which also includes import sales tax.
This makes car imports cheaper for end consumers. The standard tax rate will fall from 19% to 16%, the reduced tax rate - interesting for classic car imports - from 7% to 5%. It is important to note that the tax reduction is limited until the end of the year 2020. Until then, the import must be completed. It is therefore worth considering buying a car in another EU country - or within the USA and Canada - in the second half of the year and fulfilling a long-cherished car dream. You save money!