The VAT car: attractive for entrepreneurs
A VAT car works exactly the other way around. This is a car that has previously been used for business purposes, for example by a company or a leasing company. Because the seller was able to deduct the VAT on the purchase of the car, this VAT will be charged to you when sold.
For an entrepreneur, this can be a big advantage: you can claim the VAT back from the tax authorities. That could just save thousands of euros. Suppose you buy a car for €24,200 including 21% VAT and 0 euro BPM for convenience. As an entrepreneur, you can then claim a refund of €4,200 in VAT, so that the car only costs you €20,000 net. That is quite a difference, especially with more expensive cars.
For individuals, a VAT car is not necessarily cheaper, because they cannot claim that VAT back. The advantage of a VAT car therefore lies mainly in business use.
What should you pay attention to when choosing?
So the most important difference between a margin car and a VAT car lies in the origin of the car and the way in which VAT is treated.
- Margin car: from an individual, price including all taxes, no VAT refundable, especially interesting for private individuals or private use by entrepreneurs.
- VAT car: from a business owner, price excluding or including VAT depending on how it is listed, VAT deductible for entrepreneurs, especially interesting for business use.
Do you have doubts? Always ask the seller explicitly, or, of course, a Carvendo advisor. It's often mentioned in the ad or on the invoice, but it doesn't hurt to double-check. This way, you can be sure that you will not be faced with any surprises.
