Understanding MwSt in Germany: A Guide for Car Buyers and VAT Refunds

“MwSt ausweissbar” means that the price of the car includes value-added tax (VAT). This VAT, or Mehrwertsteuer (MwSt) in German, is an additional amount paid by the buyer on top of the cost of the vehicle. The seller then remits this tax to the government. For buyers outside the EU, it is possible to purchase the car net of VAT, meaning the VAT can be refunded once the car is exported out of the EU, provided certain conditions and formalities are met.

The VAT rate in Germany is 19%. When you purchase a car, the price often includes this VAT. For example, if a car is listed for €22,000 including VAT, the net price (excluding VAT) would be €18,487.39, with the VAT amounting to €3,512.60. Buyers can see this breakdown in car advertisements with terms like “inkl. MwSt” indicating VAT is included in the price. This VAT is refundable for buyers outside the EU upon fulfilling the necessary export and documentation requirements.

To be eligible for a VAT refund, the buyer must be a legal entity or business and the car must have been owned by a business or private entrepreneur. Private individuals do not qualify for VAT refunds. Additionally, the car must be exported outside the European Union, and the buyer must provide proof of this export through documents such as the EX-Ausfuhranmeldung (export declaration) and other customs clearance documents.

To calculate the VAT amount for a car in Germany, divide the gross price by 1.19 (since the VAT rate is 19%). For example, for a car priced at €22,000 including VAT, the calculation would be: €22,000 / 1.19 = €18,487.39 (net price). The VAT amount would be €22,000 – €18,487.39 = €3,512.60. This method helps you determine the exact amount of VAT included in the gross price.

To obtain a VAT refund, you need to provide the following documents: the EX-Ausfuhranmeldung (export declaration), registration documents from customs clearance, the car’s purchase contract (Kaufvertrag), proof that the car has left the EU, and any additional documentation requested by the seller. Ensure all documents are correctly filled out and submitted within the required deadlines to facilitate a smooth refund process.

In Germany, invoices must clearly state the VAT amount as a separate line item. The invoice should include the gross price, net price, and the VAT rate applied (usually 19%). For businesses, it is crucial to ensure that VAT is correctly itemized to comply with German tax regulations and facilitate any potential VAT refund processes.

The German VAT return process involves several key steps:

1. Ensuring the car qualifies for a VAT refund (owned by a business and exported outside the EU).
2. Obtaining an export declaration (EX-Ausfuhranmeldung) from the customs office.
3. Providing proof of export and necessary documentation to the seller.
4. Discussing with the seller the methods and deadlines for the VAT refund.
5. Submitting all required documents and following up to ensure the VAT refund is processed.

Yes, certain transactions and goods may be exempt from MWST in Germany. For example, sales to businesses outside the EU can often be exempt from VAT, provided proper documentation and proof of export are supplied. Additionally, some goods and services may be exempt or subject to reduced VAT rates under specific conditions outlined by German VAT regulations.

MWST compliance for businesses in Germany involves registering for VAT, collecting VAT on sales, issuing VAT-compliant invoices, and filing regular VAT returns with the tax authorities. Businesses must also maintain accurate records of VAT collected and paid, and ensure all transactions are properly documented to comply with German VAT laws and regulations.