Are you going to buy a car from the USA? Be aware of your duty obligation. We suggest how much it is and whether importing a car from the United States always involves paying customs duty.
When do you pay duty on a car from the USA and when do you not?
Cars from the USA are becoming increasingly popular among Poles. They tempt with stylish design, rich equipment and, above all, attractive prices. Cars from the USA can be up to 30-40 per cent cheaper than their European counterparts, which encourages imports.
Before you start counting in your mind the money you've saved by buying a car from the US, however, bear in mind that there are various charges imposed on goods imported into Poland from outside the European Union, such as:
- customs,
- VAT.
- excise duty.
Although the legislation provides for certain exemptions from duties, importing a car from the United States is generally not covered by them. Therefore, if you wish to import a vehicle purchased in the USA into Poland, you will have to reckon with additional customs duties and taxes. Only by taking all of these charges into account can you determine the true cost of importing a car from overseas and whether buying a car from the USA is actually worthwhile.
Importing a car from the US - when won't you pay duty?
The duty obligation does not apply to antique cars. However, without meeting certain requirements, a car from the US will not be classified in this category. The vehicle must be at least 30 years old and have the original main structural components. Still, the car must pass customs clearance. What about electric cars, which are becoming increasingly popular in Poland? Electric cars are not exempt from customs duties.
How much duty on cars from the US? What about VAT and excise duties on cars from the US?
The countries of the European Union form a Customs Union. This means that they all have the same customs clearance rules, as well as the same customs duty rates. So regardless of which port within the EU you bring your dream car from the USA to, the same customs rate will apply in each. This amounts to 10 per cent of the customs value of the vehicle.
When determining the value of the duty in the EU, neither the engine capacity nor the technical condition of the car or its age are taken into account. The amount of duty depends primarily on the value of the car. The more the vehicle cost you, the higher the amount of duty payable will be. However, the final customs value of a car, and therefore the amount of duty, is not only made up of the value of the vehicle. It is also taken into account when determining it:
- the cost of transporting the car by sea,
- expenditure incurred in connection with transport insurance.
VAT on car imports from the USA - where in the EU does it pay most to transport a car from overseas?
EU regulations do not regulate the amount of other public duties such as VAT and excise taxes, which also have to be paid when deciding to import a car from the US. Countries determine these themselves.
As a result, depending on which port you choose, you may pay more or less VAT. In Poland it is 23 per cent, in the Netherlands it is 21 per cent and in Germany 19 per cent. Therefore, even before you make your purchase, you can determine where it will be more or less profitable to transport your car.
Importing a car from the USA and excise duty - what, apart from the value of the vehicle, affects the liability?
Even if you bring a vehicle into a foreign port and clear it through customs outside Poland, you will not escape excise duty. The excise duty is levied on all vehicles that have not previously been registered in the Republic of Poland - both new and used. The amount of excise duty - in addition to the value of the vehicle - is also affected by the type and capacity of the engine.
For example, if you decide to import a car from the US equipped with an internal combustion engine or hybrid HEV and MHEV with a capacity of up to 2.0 l, you will pay an excise duty of 3.1 per cent. and 1.55 per cent. of the value of the imported car, respectively. If the capacity of the car exceeds 2.0 l, the excise duty will increase to 18.6 per cent. of the value of the vehicle for combustion units and 9.3 per cent. of the value of the car for HEV, MHEV and PLUG-IN hybrid units. However, for electric and vintage cars, you will not pay excise duty.
Duty on cars from the US vs. displaced property - when does the duty not apply?
The importation of a car from the US can be exempted from duty if the car is classified as a resettlement property, which the resettler carries with him/her as a personal and household item. In such a case, the owner of the vehicle shall make a special application for exemption from customs duty..
However, to qualify for the resettlement property relief, a number of requirements must be met. Firstly, a minimum of one year's legal residence in the US and a minimum of six months' use of the vehicle in the US must be documented. In addition, the car must not have been sold within at least six months of being brought to Poland, nor must it have been included in company assets during this time. Otherwise, it will lose its status as displaced property.
Importing cars from the USA is becoming increasingly popular. However, importing a car from overseas is accompanied by a number of formalities. Amongst other things, the new owner must pay customs duty, VAT and excise duty. At Carslade, we focus on transparency of cooperation - we always inform our customers about the customs and tax fees they will have to pay in connection with importing a car from the USA. This allows them to assess whether it is worthwhile for them even before they buy the car.
