Understand how EU VAT-registered companies can reclaim import VAT on Japanese vehicle imports — and how the margin scheme works for dealers.
⚠️ This guide is for informational purposes only and does not constitute tax advice. Always consult a qualified tax adviser or accountant in your country.
EU VAT-registered businesses can reclaim import VAT paid on vehicles as input tax, offsetting it against VAT collected on sales — effectively making the import VAT cost-neutral.
Most EU countries restrict VAT recovery on cars used partly for private purposes — typically 50% deductible. Commercial vehicles and vans usually qualify for full deduction.
VAT dealers who resell used vehicles can apply the margin scheme — paying VAT only on the profit margin rather than the full sale price, improving competitiveness.
Businesses importing vehicles for rental, fleet, or commercial use may qualify for full VAT recovery without the private use restrictions that apply to passenger cars.
Select your business type to see how VAT applies
Dealers registered for VAT who buy vehicles to resell have the most favourable VAT treatment in the EU.
Example: You import a Nissan Skyline GT-R for €18,700 CIF. Import duty (10%) = €1,870. Import VAT (21%) = €4,326. As a VAT-registered dealer, you reclaim the €4,326 as input tax — your effective import cost is €20,570. You sell for €28,000 and collect VAT on the margin or full price depending on scheme chosen.
Businesses importing vehicles for director or employee use face partial VAT restrictions in most EU countries.
Example (Netherlands): Import a Toyota Supra for company use. Import VAT = €5,250. You can reclaim 50% = €2,625 as input tax. The employee's private use is taxed as bijtelling (benefit-in-kind) — typically 22% of catalogue value per year added to their salary. Net saving is still substantial vs. buying in the EU secondhand market.
Rental companies, driving schools, and fleet operators often qualify for full VAT recovery on vehicles used exclusively for business.
Example: A car rental company in Germany imports 5 Toyota Land Cruisers. Total import VAT = €28,500. As a B2B rental business with no private use, they reclaim all €28,500 as input tax. Effective saving compared to private import = €28,500 cash flow benefit plus ongoing deductions on running costs.
Private individuals importing vehicles for personal use must pay all taxes in full — no VAT reclaim is available.
Note: While private importers pay full taxes, importing directly from Japan still typically offers 30–60% savings compared to equivalent vehicles sold within the EU market — particularly for rare or performance models that are simply unavailable locally. The numbers still make strong sense for enthusiasts.
Summary of VAT rates and business reclaim rules across all EU markets
| Country | VAT Rate | Business Reclaim | Key Rules |
|---|---|---|---|
| 🇳🇱 Netherlands | 21% | Yes | Dealers: full deduction. Company cars: 50% max. Private: none (margin scheme applies) |
| 🇩🇪 Germany | 19% | Yes | Full deduction for business use; 50% restriction for company cars used privately |
| 🇫🇷 France | 20% | Yes | Full deduction for dealers; company car private use restricted; margin scheme available |
| 🇧🇪 Belgium | 21% | Yes | Standard EU rules; 50% cap on company cars with private use |
| 🇪🇸 Spain | 21% | Yes | Full deduction for commercial vehicles; 50% for mixed-use cars |
| 🇮🇹 Italy | 22% | Partial | Only 40% deductible for company cars; full for commercial/rental |
| 🇸🇪 Sweden | 25% | Yes | Full deduction for business; private use must be declared as benefit-in-kind |
| 🇩🇰 Denmark | 25% | Partial | VAT deductible on purchase but taxed on private use; complex rules |
| 🇫🇮 Finland | 25.5% | Yes | Full reclaim for dealers; company cars subject to private use rules |
| 🇦🇹 Austria | 20% | Yes | Full deduction for business; 50% for company cars with private use |
| 🇵🇹 Portugal | 23% | Partial | 50% restriction on passenger cars; full for commercial vehicles |
| 🇵🇱 Poland | 23% | Yes | 50% deductible for cars used partly privately; full for trucks & commercial |
| 🇮🇪 Ireland | 23% | Partial | Block on passenger car VAT recovery except for dealers and driving schools |
| 🇧🇬 Bulgaria | 20% | Yes | Full deduction for business use; private use proportion must be declared |
| 🇭🇷 Croatia | 25% | Partial | 50% restriction on passenger cars with private use; full for commercial vehicles |
| 🇨🇾 Cyprus | 19% | Partial | Passenger car VAT generally blocked; exceptions for dealers, leasing and taxis |
| 🇨🇿 Czech Republic | 21% | Yes | Proportional deduction based on business use ratio; dealers fully recoverable |
| 🇪🇪 Estonia | 22% | Yes | Full deduction for business; private use must be declared and taxed accordingly |
| 🇬🇷 Greece | 24% | No | Passenger car VAT not recoverable for most businesses; dealers and rental are exceptions |
| 🇭🇺 Hungary | 27% | Partial | Highest VAT in EU; 50% restriction on cars; full for taxis, driving schools and dealers |
| 🇱🇻 Latvia | 21% | Yes | Proportional deduction based on business use; standard EU rules apply |
| 🇱🇹 Lithuania | 21% | Yes | Full deduction for business use; private use portion excluded |
| 🇱🇺 Luxembourg | 17% | Yes | Lowest VAT in EU; full deduction for business; popular for cross-border vehicle purchases |
| 🇲🇹 Malta | 18% | Partial | Restrictions on passenger cars; full recovery for dealers and commercial operators |
| 🇷🇴 Romania | 19% | Yes | 50% restriction for mixed-use cars; full for commercial and fleet vehicles |
| 🇸🇰 Slovakia | 20% | Yes | Proportional deduction based on business use ratio; standard EU rules apply |
| 🇸🇮 Slovenia | 22% | Partial | 50% restriction on passenger cars with mixed use; full for commercial vehicles |
⚠️ Important Disclaimer: VAT rules are complex and change regularly. The information above is a general guide only. Ireland in particular has strict block input tax rules for passenger cars. Always engage a local VAT specialist before making import decisions based on tax assumptions. Zen Auto Import can connect you with trusted tax advisers in each country.
Four steps to import as a VAT-registered business
Ensure your business is VAT-registered in your EU country. Share your VAT number with us at the start of the import process.
Tell us whether this is for resale, company use, fleet or rental. We adapt the paperwork and customs declarations accordingly.
We provide all customs documents (C88, import VAT certificate) needed for your accountant to process the VAT reclaim.
Your accountant claims import VAT as input tax on your next VAT return. We're available to assist with any supporting information needed.