Understanding Car Import Duties and VAT in Europe

by breakadmin

Import duties and VAT can significantly impact the total cost of shipping your car from Dubai to Europe. Understanding these costs upfront helps you budget accurately and choose the most cost-effective destination.

How Import Duties Work

Import duty is calculated as a percentage of the vehicle’s declared value. Most European countries charge 10% import duty on vehicles from non-EU countries like the UAE.

VAT Calculations

Value Added Tax (VAT) is applied to the total value including the original purchase price plus import duty. VAT rates vary significantly across Europe.

Example Calculation

For a €50,000 vehicle shipped to Germany:

• Vehicle value: €50,000
• Import duty (10%): €5,000
• VAT base: €55,000
• VAT (19%): €10,450
• Total duties: €15,450

Money-Saving Tips

• Accurate valuation can reduce duty calculations
• Consider destinations with lower VAT rates
• Explore classic car exemptions if applicable
• Professional customs handling ensures compliance

Our experts handle all customs calculations and procedures. Learn more about our customs clearance services.