VAT on Used Cars in Germany: Net, Gross and the Margin Scheme

German VAT (Mehrwertsteuer, MwSt.) is a one-time sales tax at 19%. It is paid by the private end buyer as part of the price. Whether a used car carries it depends on the car's previous use:

• Previously owned by a private person: no VAT on the price, even when a dealer sells it.
• Previously used by a business (company car, lease return, dealer demo) and sold by a company: 19% VAT on the current selling price.

If a listing shows one price, that is what you pay. If it shows a net and a gross price, a private buyer pays the gross price.

When a dealer buys a car from a private person and resells it, German law lets the dealer use the margin scheme (Differenzbesteuerung, § 25a UStG). The dealer then owes VAT only on its own margin, the difference between purchase and selling price, and accounts for it internally.

For you as the buyer this means:

• No VAT is added to the price and none is shown on the invoice.
• The invoice carries the note "Gebrauchtgegenstände/Sonderregelung" instead (§ 14a UStG).
• Nothing can be reclaimed, not even by a business buyer, because no VAT is shown.

On portals these cars are often marked "differenzbesteuert" or "MwSt. nicht ausweisbar". A car sold by a private seller carries no VAT at all.

A car that was used by a business, such as a company car, a lease return or a dealer's demo car, is sold with regular VAT when a company sells it. The listing then usually shows both a net and a gross price and the note "MwSt. ausweisbar": VAT is included and can be shown separately on the invoice.

• A private buyer pays the gross price. The 19% is part of what you pay, not an extra.
• A VAT-registered business may be able to reclaim the VAT as input tax, so for a business the net price can be the real cost. Ask your tax adviser whether that applies to you.

VAT rules for exporting a car out of the EU are different and depend on the seller and on customs proof. We do not cover them here. Ask the dealer and check with German customs (zoll.de).

• Lease return from a dealer, listed at €23,800 gross / €20,000 net, "MwSt. ausweisbar". As a private buyer you pay €23,800. The €3,800 difference is the 19% VAT.
• Privately owned car from a dealer, listed at €15,000, "differenzbesteuert". You pay €15,000. No VAT is added and none is shown on the invoice.

Before you pay, ask the seller which of the two applies if the listing is not clear. For listing details, see our mobile.de guide. For room on the price itself, see negotiating a used car price.

Some CarTurf fees are based on the car's price, so it matters which figure is used:

• Auction sourcing: €750 + 4% of the net price. See German car auctions.
• Selling your car: €500 + 5% of the gross sale price. See selling a car in Germany.
• Negotiation (optional): Any customer can book our optional negotiation service. If we get the price down, the fee is 50% of the amount saved. If nothing is saved, there is no fee.

For plans and everything else, see our Pricing page. If you are buying from abroad, also read buying a car in Germany remotely.