12/02/2009

FAQ: Buying a car in Europe

Here you can read everything you need to know about buying and importing a car in Europe. Can't find the answer to your question? Then contact our legal service (02 542 33 46 or info@eccbelgium.be). Our service is free of charge.

1. What do I need to know before I buy a car in another country?

You need to know that the rules and warranties vary depending on whether you want to buy a new or a used car, whether you buy from a private individual or from a professional dealer and whether the seller is established or not in a Member State of the European Union.

You will enjoy the best protection if you buy a new car from a professional dealer in an EU Member State. In this situation you will benefit from the warranty in your own country (see question 14).

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2. How do I know in which EU Member State a particular car is cheapest?

If you intend to buy a new car, then you can consult the price comparison which the European Commission publishes twice a year. Here you will find the recommended prices for new cars (therefore prices not on special offer or with discounts) issued by car manufacturers for all Member States of the European Union via this link. The models and which options are included in the price are mentioned for each make.

The actual price you will pay for a new car* is the net price (therefore without VAT) of the car + Belgian VAT at 21%.

The situation varies for a non-new car*. You will not pay VAT if you buy from a private person. If you buy from a professional, you will pay the VAT where you bought the car.

When comparing prices from different dealers you must make sure that you are comparing the same models with the same options. Remember also that you can negotiate on the price with many sellers. If necessary call on the assistance of someone who knows local practices.

(* see question 3 for the definition and question 4 for more information about VAT.)

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3. The car I want to buy is three months old and already has 3500 km on the clock, but the seller is selling it as new. Is that allowed?

Yes. The Belgian VAT code considers a passenger car to be new if at least one of the following conditions is met:

Delivery is made within a time limit of six months counting from the date on which the car first entered into service.
or
The car has not been driven for more than 6000 km.

A car is not new if it complies with the following two conditions:

Delivery is made more than six months after the date on which the car first entered into service.
and
The car has been driven for more than 6000 km.

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4. What about the VAT if I buy a car in another EU Member State?

If you buy a new car in another EU Member State, then you will pay the price on the spot without VAT. When you import the car into Belgium you will have to pay 21% VAT in Belgium.

If you buy a non-new car, you will pay the price including VAT on the spot. The VAT rate in the country of the seller then applies. Click here for a list of all VAT rates in the EU.

These rules only apply for a sale by a professional dealer to a private individual. If a private individual buys from another private individual, in principle no VAT is payable.

Be careful, however, if you buy a car which the customs authority deems to be new from a private individual. In this case you will have to pay 21% VAT when you import the car into Belgium. The seller can in that case reclaim the VAT that he paid in his own country. This mechanism prevents double taxation but if you didn't take this into account when you bought the car, then you could lose out.

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5. Which documents do I need to obtain from the seller when buying a car?

The seller must give you the following documents:

The purchase invoice (or proof of purchase) stating at least the price including or excluding VAT (depending on the case: see question 3) and a description of the car.
The registration certificate if the car is already registered.

And, if possible:

The European Certificate of Conformity (see question 6 and question 7).
Any other relevant document such as the maintenance manual or transport invoices.

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6. What is the European Certificate of Conformity?

The European Certificate of Conformity is a document that you need to submit when you register a car. This certificate proves that the vehicle complies with the legally necessary technical requirements.

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7. I didn't receive a Certificate of Conformity when my car was delivered. Now what do I do?

You will not always receive this certificate automatically in other countries. If the seller is unable to provide this, then you can usually obtain it from the manufacturer of the car. The manufacturer will provide the certificate within a reasonable time at a reasonable price. If the manufacturer is unable to provide this certificate, then the vehicle will need to be identified by a special technical inspection. Moreover the Federal Public Service Mobility and Transportation will have to approve the procedure.

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8. I would like to buy a car in another country. How do I transport it back to Belgium?

There are various methods of transporting your car to Belgium.

You can drive the car on a trailer to Belgium.
You can use the services of a transportation firm.
You can drive the car yourself to Belgium with transit plates (see question 9).
If it is easy to return to the seller, you can first register your car and use the permanent plates when you buy a new car.

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9. What are transit plates and where can I get them?

Transit plates are temporary number plates that allow you to drive to Belgium with your car. You will need to enquire in the country where you buy the car where and how you can order transit plates and how much they cost. Usually the seller can help you with this. Do not forget to insure the new car for the journey.

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10. Can I drive the car with the plates from my old car to Belgium?

It sometimes happens that cars are imported with plates from another car but this is illegal.

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11. What formalities do I need to fulfil to bring a car to Belgium?

In the first place you need to submit a special VAT declaration (446) at the customs office and pay the VAT on the new car (21%) if this is a new car. This may be in cash or with a certified bank cheque.
After this you must take out insurance for the car.
If you bought a second-hand car, you will need to go through technical inspection.
Then you will have to register your car with the DIV.
Finally you will have to pay the required taxes (tax on circulation and road tax).

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12. What is the special VAT declaration regarding intra-Community acquisition of new means of transport (form 446)?

When you import a car from an EU Member State (intra-Community acquisition) you will have to go to a Belgian customs office. If this concerns a new car, then you will need to complete a special VAT declaration (form 446).

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13. What is vignette 705?

The customs officer will issue vignette 705 to you and confirm that the car is in order as regards VAT. This is a green sticker which he sticks onto the pink form "application to register a vehicle".

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14. I would like to buy a car in another EU Member State. What about the warranty?

If you bought the car from a professional dealer then you are covered by a legal warranty of two years. The car can be returned for up to one year for second-hand cars. The warranty covers manufacturing faults and other defects for which the seller (in this case in another country) can be held liable. Alongside the legal warranty the manufacturer can also offer a commercial warranty. Click here for more details.

Due to European legislation (Regulation 1475/95), you can approach any dealer in the manufacturer's network to claim under the warranty, regardless of the Member State where you bought the car. This is on condition that the vehicle is maintained in accordance with the maker's instructions at a recognised workshop for that brand. You will find more details about this on page 15-16 in our brochure in Bying a car in the European Union.

For more details you can also go to the website of the FPS Mobility and Transport in Dutch or French.

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FAQ: Buying a car in Europe