Import Duty and VAT on Cars From the USA: How the EU Calculates It
The EU charges the same import duty in every member state, but VAT and registration taxes differ. Here is how the numbers are built — with a worked example.
Customs is where many first-time importers get their budget wrong. The rules are logical, but the order of calculation matters. This article explains the EU approach; country pages such as Germany or Poland list the local VAT and extra taxes.
Step 1: the customs value (CIF)
EU customs use the CIF value — Cost, Insurance and Freight — as the base:
- the price paid for the car (the winning bid or dealer price);
- auction and dealer fees;
- transport inside the USA and ocean freight to the EU border;
- cargo insurance.
Step 2: import duty
For passenger cars the EU common customs tariff is generally 10% of the CIF value. Motorcycles and boats have different rates, and some commercial vehicles and pickups are classified differently — which can change the rate significantly. Always confirm the tariff code of the exact vehicle before buying.
Step 3: import VAT
VAT is charged on CIF value plus duty, at the rate of the member state where the car is cleared: 19% in Germany, 23% in Poland, 21% in the Netherlands, 20% in France, and so on. VAT-registered businesses can usually reclaim it; private buyers cannot.
Worked example
| Item | USD |
|---|---|
| Winning bid | $20,000 |
| Auction fees | $1,000 |
| Inland transport + ocean freight | $2,300 |
| Insurance (1.5%) | $300 |
| CIF value | $23,600 |
| Duty 10% | $2,360 |
| VAT 19% on $25,960 (Germany) | $4,932 |
| Total before registration | $30,892 |
The calculation is converted to euro at the customs exchange rate on the day of clearance.
Step 4: national taxes and registration
After customs, each country applies its own rules: registration or CO₂-based taxes, excise in some states, and technical approval. US-spec cars often need lighting changes and an individual approval before the first registration. These costs vary a lot between countries — that is why our country pages list them separately.
Ways to reduce the bill legally
- Keep freight and fee invoices — without them customs may use estimated values.
- Choose the port and clearance country wisely; transit rules allow clearing in one EU state and registering in another, but VAT follows specific rules.
- Check whether the vehicle qualifies for classic-car treatment (usually 30+ years, original condition) — duty and VAT can be much lower.
Get an exact figure
Use our import cost calculator for an estimate, or send us a lot number — your manager will confirm the exact duty, VAT and registration costs in writing before you bid.