Importing a Car from Canada – Duty-Free Thanks to CETA

phone2026-06-30
categoryBuying Guide

In short: Cars built in Canada count as Canadian-origin and, thanks to the CETA trade agreement, can be imported into the EU duty-free (0 % instead of 10 %) since 1 January 2024 – and as the dealer we provide the required proof of origin. The 19 % import VAT still applies (CETA only removes the customs duty). To tell whether a specific car was built in Canada, check the VIN: if it starts with “2”, final assembly took place in Canada.

When people think about importing a car from North America, the USA usually comes to mind first. But for everyday buyers across Germany and Europe, Canada is just as worthwhile – under CETA the import duty on Canadian-built vehicles has been fully removed: from family vans and everyday SUVs to premium models and pickups.

What CETA means for importing from Canada

CETA has phased out tariffs between the EU and Canada. For passenger cars this was completed on 1 January 2024: the former 10 % EU duty on Canadian-origin vehicles is now 0 %. Origin (where the car was built) decides this – not the brand. As the dealer we supply the required proof of origin; note that CETA only affects the duty: 19 % import VAT, shipping and any conversion costs still apply.

Which models are built in Canada (2024–2026)

SegmentModelPlant (Ontario)Origin / note
Family & vanChrysler Pacifica / Voyager / Grand CaravanWindsorCanada only
Everyday SUVToyota RAV4 / Honda CR-VCambridge·Woodstock / Allistonalso USA/Japan – check VIN
SedanHonda Civic sedan / Hybrid / SiAllistonsedan Canada only (hatchback USA)
Premium SUVLexus RX / NXCambridgebuilt only in Canada
PickupChevrolet Silverado 1500 & HDOshawaalso USA/Mexico – check VIN
EV & characterDodge Charger Daytona (EV) & SIXPACK (gas)Windsornew generation Canada only

Coming soon: Ford Super Duty (F-250/F-350) from Oakville – production starts summer 2026.

How to identify a Canadian-built car: the VIN

The first character of the 17-digit VIN encodes the country of final assembly: 2 = Canada, 1/4/5 = USA, 3 = Mexico. For models built in parallel (RAV4, CR-V, Civic, Silverado) the VIN is the only reliable indicator. The official NHTSA VIN decoder shows plant and country.

Worked example: how much CETA saves you

The key point for private buyers: duty is charged on the entire import value (price + shipping + insurance, “CIF”), and the 19 % import VAT then also applies on top of the duty. So when CETA removes the duty, you save twice.

ItemBefore (10 % duty)With CETA (0 %)
Vehicle value€35,000€35,000
Shipping + insurance€2,000€2,000
Import value (CIF)€37,000€37,000
Duty (10 % of CIF)€3,700€0
Import VAT (19 % of CIF + duty)€7,733€7,030
Total charges€11,433€7,030

Saving ≈ €4,400 – €3,700 duty plus €703 VAT-on-duty. Private buyers who cannot reclaim VAT benefit the most. (Example figures; check exchange rate/fees before buying.)

What to watch for

We provide the proof of origin as the dealer; check the VIN (especially for parallel-built models); the trade situation is dynamic, so we align the exact duty treatment with customs; classic cars (30+ years) are duty-privileged anyway. At USCar-Trader we handle the entire import.

FAQ

Are all cars from Canada duty-free into the EU?
Yes, if they are Canadian-origin – and as the dealer we provide the CETA proof of origin. The duty is then 0 % (since 2024); the 19 % import VAT still applies.

How do I know a car was built in Canada?
By the VIN: a leading “2” means final assembly in Canada.

Does a Canadian-built Toyota or Honda count too?
Yes. RAV4, CR-V and the Civic sedan often come from Canada – check the VIN due to parallel US production.

Is there still tax despite CETA?
Yes. CETA only removes the duty (0 %). The 19 % import VAT is still charged.

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