Help & Advice
VAT on vehicles: private individual or professional
VAT depends on your status, the country and whether the car is new or used. Here are the benchmarks to see clearly.
Private individual or professional
The seller's status changes everything.
- A private individual reselling their used vehicle does not charge VAT
- A VAT-registered professional applies VAT or the margin scheme
- The advertised price therefore doesn't mean the same thing depending on the seller
New or used within the EU
For VAT purposes, the notion of a new vehicle is a particular one.
- A vehicle is considered new if it is under six months old or has under 6,000 km
- For such a vehicle, VAT is due in the country of destination
- A used car falls under a different regime, sometimes with VAT on the margin
Intra-EU purchase
Transactions between EU businesses follow precise rules.
- Intra-EU reverse charge mechanism
- A valid VAT number, checked via VIES
- Documentation to keep carefully
VAT on your Luxydrive subscription
On the platform side, billing for our plans follows these principles.
- Luxembourg VAT of 17% by default
- Intra-EU reverse charge for professionals whose VAT number is valid in VIES
- Invoices available for your accounts
Good habits
Automotive taxation is technical: a few precautions are in order.
- Keep all invoices and supporting documents
- Check the VAT or margin regime stated on a professional listing
- This information is general and does not replace the advice of a tax adviser
FAQ
17% (Luxembourg VAT) by default, or the intra-EU reverse charge for professionals with a VAT number valid in VIES.
No. A private individual reselling their used vehicle does not charge VAT.