Paying VAT for a new or used vehicle purchased in an EU Member State

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When purchasing a new or used vehicle in a European Union (EU) country, buyers must observe certain administrative formalities in Luxembourg.

The VAT regime differs depending on whether the vehicle is new or used, and whether the purchaser is a person not subject to VAT (an individual) or an entity subject to VAT (a company). Therefore, whereas an individual is required to file a special VAT return (Form 446-L) for the purchase of a new vehicle, companies are required to pay Luxembourg VAT, regardless of whether the vehicle is new or used.

Private individuals may, however, be exempted from the payment of Luxembourg VAT if there is a transfer of residence, or if the individual has the status of a diplomat or European civil servant.

Who is concerned

This applies to the following people:

  • private individuals (Luxembourg residents) who acquire a vehicle in an EU Member State;
  • Luxembourg companies that purchase a vehicle in an EU Member State.
'Vehicle' in this sense means any motorised land vehicle with an engine capacity of more than 48 cubic centimetres or more than 7.2 kilowatts used for the transport of persons or goods.

According to the VAT regulations in force, a vehicle is considered to be:

  • a used vehicle if it has travelled over 6,000 km and if it was first operated more than 6 months previously;
  • a new vehicle if it has travelled under 6,000 km or if it was first operated fewer than 6 months previously.

Example:

  • a vehicle that has travelled 5,600 km is considered a new vehicle under the VAT rules, even if it has already been registered for 8 months;
  • a vehicle that has travelled 7,600 km and has been registered for 4 months is considered a new vehicle under the VAT rules;
  • a vehicle that has travelled 7,600 km and has been registered for 8 months is considered a used vehicle under the VAT rules;

How to proceed

Verification of the obligation to pay VAT in Luxembourg

Private individual buying a used vehicle from another private individual

No VAT is due on sales of used vehicles between private individuals.

Private individual buying a used vehicle from a professional

VAT is due in the country where the vehicle is purchased; no VAT is due in Luxembourg. However, the car must cleared by Customs (sticker 705).

Private individual buying a new vehicle from another private individual or a professional

VAT is due in the country of registration of the vehicle. This means that Luxembourg VAT (17 %) is due when the vehicle is registered in Luxembourg. Therefore, sales of new cars are invoiced exclusive of VAT in the country of origin and Luxembourg VAT must be paid regardless of whether the new vehicle is purchased from a professional dealer (such as a garage) or a private individual.

This means that the only condition that triggers the payment of Luxembourg VAT is related to the vehicle itself, which must have travelled fewer than 6,000 km or have been operated for fewer than 6 months (new vehicle).

Company buying a new vehicle from a professional

VAT is due in the country of registration of the new vehicle. In the case of an intra-Community acquisition of goods, the acquisition is reported as such in the section intended for the declaration of VAT, and taxed at the rate of 17 %. On the other hand, the input tax levied on this transaction is fully deductible.

Persons who purchase a vehicle themselves in an EU member state must be able to produce all necessary documents in the event of a roadside check, that is to say:

  • a certificate of compliance issued by the manufacturer;
  • a registration certificate;
  • a certificate of insurance issued by an insurance company.

To drive through certain EU member states, a local insurance certificate may be required.

Company buying a used vehicle from a professional

Two situations may arise:

  • the used car is subject to the special regime in which the profit margin is taxed (the tax base is equal to the difference between the sale price and the purchase price). In this case, the sale of the car is invoiced inclusive of VAT in the country of origin. The transaction does not qualify as an intra-Community purchase for the buyer in the strict sense of the term and is not to be reported as such. The car is only mentioned on the amortisation schedule. No input tax deduction is possible;
  • the used car is subject to the normal tax regime. In this case, the sale of the car is invoiced exclusive of VAT in the country of origin. The transaction qualifies as an intra-Community purchase of goods for the buyer and is to be reported as such in the section intended for the declaration of VAT. The transaction is taxed at the rate of 17 %. On the other hand, the input tax levied on this transaction is fully deductible.

In the two cases mentioned above, the 705 sticker must be obtained from the Customs and Excise Agency (Administration des douanes et accises), except for cars coming from Belgium.

Presentation of the vehicle at Customs

Conditions for obtaining a 705 sticker

To obtain a 705 sticker, the purchased vehicle must be taken in, in person—by the private individual or a representative of the company—to one of the Customs and Excise Agency offices.

Private individuals or company representatives can contact the offices in Diekirch, Grevenmacher, Esch-sur-Alzette or the customs centre in Gasperich - P&R Lux-Sud / Luxembourg-City.

The 705 sticker is a document issued by the Customs and Excise Agency proving that a vehicle that has yet to be registered is in order with regard to VAT.

The person taking in the vehicle must produce the following documents to obtain the 705 sticker:

  • the previous registration certificate (if the vehicle has already been operated);
  • the original copy of the European Certificate of Conformity;
  • the original invoice for the purchase of the vehicle, or the sales contract, or possibly proof of payment;
  • the registration number that was requested beforehand if the vehicle does not have one;
  • the insurance certificate;
  • the national identification number (matricule - 13-digit social security number), or the tax registration number (11-digit number).

Private individuals must also provide the original copies of an identity document (identity card or passport).

All documents presented to the Customs and Excise Agency must be original copies. The documents will be returned by the Agency.

Additional formalities for private individuals purchasing a new vehicle

When the vehicle is considered to be new for VAT purposes, the private individual must also file a special VAT return (form 446-L).

The 446-L return form can be obtained from one of the Customs and Excise Agency offices (in Diekirch, Grevenmacher, Esch-sur-Alzette or the customs centre in Gasperich - P&R Lux-Sud / Luxembourg-City), and must be submitted to one of those offices.

The VAT due amounts to 17% of the purchase price. Payment of Luxembourg VAT by private individuals is to be made at the Customs and Excise Agency office, in euros.

When payment is made, the Customs and Excise Agency office will return part D of the 446-L return form to the private individual. This document serves as proof of payment of the VAT.

For persons subject to VAT, this formality is not applicable and payment is made via the 'normal' VAT return.

Issuance of the 705 sticker

When the formalities described above have been completed, the Customs and Excise Agency will issue a 705 sticker. This is required to register the vehicle at one of the 3 SNCA sites (Sandweiler, Esch-sur-Alzette or Wilwerwiltz).

As part of the registration procedure in Luxembourg, the vehicle must be taken in for a technical inspection to verify its technical compliance (the "acceptance" procedure) and to ensure that it is in good working order.

Forms / Online services

Your vehicles and license plates

To complete your application, the information about you collected from this form needs to be processed by the public administration concerned.

That information is kept by the administration in question for as long as it is required to achieve the purpose of the processing operation(s).

Your data will be shared with other public administrations that are necessary for the processing of your application. For details on which departments will have access to the data on this form, please contact the public administration you are filing your application with.

Under the terms of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, you have the right to access, rectify or, where applicable, remove any information relating to you. You are also entitled to withdraw your consent at any time.

Additionally, unless the processing of your personal data is compulsory, you may, with legitimate reasons, oppose the processing of such data.

If you wish to exercise these rights and/or obtain a record of the information held about you, please contact the administration in question using the contact details provided on the form. You are also entitled to file a claim with the National Commission for Data Protection (Commission nationale pour la protection des données), headquartered at 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

By submitting your application, you agree that your personal data may be processed as part of the application process.

Véhicules et numéros d'immatriculation

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Ihre Fahrzeuge und Nummernschilder

Ihre in diesem Formular erfassten personenbezogenen Informationen werden von der zuständigen Verwaltungsbehörde verarbeitet, um Ihren Antrag erfolgreich abzuschließen.

Diese Informationen werden von der Behörde für den zur Verarbeitung erforderlichen Zeitraum gespeichert.

Die Empfänger Ihrer Daten sind die im Rahmen Ihres Antrags zuständigen Verwaltungsbehörden. Um die Empfänger der in diesem Formular erfassten Daten zu erfahren, wenden Sie sich bitte an die für Ihren Antrag zuständige Behörde.

Gemäß der Verordnung (EU) 2016/679 zum Schutz natürlicher Personen bei der Verarbeitung personenbezogener Daten und zum freien Datenverkehr haben Sie das Recht auf Zugang, Berichtigung und gegebenenfalls Löschung Ihrer personenbezogenen Informationen. Sie haben zudem das Recht, Ihre erteilte Einwilligung jederzeit zu widerrufen.

Weiterhin können Sie, außer in Fällen, in denen die Verarbeitung Ihrer Daten verpflichtend ist, Widerspruch einlegen, wenn dieser rechtmäßig begründet ist.

Wenn Sie diese Rechte ausüben und/oder Einsicht in Ihre Informationen nehmen möchten, können Sie sich unter den im Formular angegebenen Kontaktdaten an die zuständige Verwaltungsbehörde wenden. Sie haben außerdem die Möglichkeit, bei der Nationalen Kommission für den Datenschutz Beschwerde einzulegen (Commission nationale pour la protection des données, 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette).

Wenn Sie Ihren Vorgang fortsetzen, akzeptieren Sie damit, dass Ihre personenbezogenen Daten im Rahmen Ihres Antrags verarbeitet werden.

Who to contact

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