Individual taxation of vehicles
Permanent foreign diplomatic missions, government consular agencies and their foreign members not permanently resident in the Federal Republic of Germany can be exempted from value added tax under certain conditions when they transfer a new vehicle to Germany that was purchased in another member state of the European Union (EU for short).
General information
If Permanent foreign diplomatic missions, government consular agencies (embassies/consulates for short) and/or their foreign members not permanently resident in the Federal Republic of Germany purchase new vehicles in a Member State of the EU and import these vehicles into Germany, they are subject to the individual vehicle taxation procedure.
Individual taxation of vehicles means that the purchase of a new vehicle in a Member State of the European Union and the transfer of this vehicle in another Member State (i.e. intra-Community acquisition) is generally subject to VAT in the country of destination.
Accordingly, a VAT declaration using the official form must be submitted to the Bundeszentralamt für Steuern (BZSt) for each new vehicle acquired in this way.
The BZSt verifies whether the requirements for a tax relief are met.
Requirements
Intra-community acquisition
An intra-community acquisition is considered to have taken place if the new vehicle is delivered to the customer from another EU Member State into Germany. The turnover in the Member State of supply is tax-free as an intra-Community supply and taxation only takes place in the country of destination. It does not matter whether the supplier or the customer has transported or dispatched the vehicle within the country.
Please note: If the vehicle is not purchased in another Member State of the EU but in Germany, the VAT that was paid for the vehicle can be refunded. Direct exemptions from VAT are not possible.
New vehicles
The following are considered new vehicles:
- Motorized land vehicles with a cubic capacity of more than 48 cubic centimeters or an output of more than 7.2 kilowatts that have not covered more than 6,000 kilometers or whose first use was not more than 6 months ago at the time of delivery.
Land vehicles include, in particular, cars, trucks, motorcycles, scooters, mopeds and motorized campers and caravans.
However, land vehicles are not caravans, trailers and other trailers without their own engine that can only be carried by motor vehicles, as well as self-propelled machinery and agricultural and forestry tractors that are not intended and suitable for the transportation of persons or goods due to their design or their special equipment permanently attached to the vehicle.
- Watercraft with a length of more than 7.5 meters that have not completed more than 100 operating hours on the water or whose first commissioning was no more than 3 months ago at the time of delivery.
- Aircraft with a maximum take-off mass of more than 1,550 kilograms that have not been used for more than 40 operating hours or whose first entry into service was no more than 3 months ago at the time of delivery.
Please note: If a vehicle is purchased in another EU Member State that is not considered new within the meaning of individual vehicle taxation and this vehicle is transferred to the Federal Republic of Germany, exemption may be possible in accordance with Article 151 of Directive 2006/112/EC. In these cases, please use the standardized form of the European Union.
Submitting a tax declaration
If a new vehicle is purchased in another EU Member State the purchaser has to file a tax declaration (form 010166) within ten days after the date of purchase. The date of purchase is considered the day the vehicle entered Germany (i.e., was transported or delivered here). If the vehicle is not registered within 10 days, it will not be objected if the declaration is submitted within 10 days of the registration date. Alternatively, the declaration can be submitted to the registration office, which will forward it to the BZSt.
A separate declaration must be submitted for each vehicle delivered, using a separate form 010166 for each declaration. The supplier's invoice must be attached to the tax declaration.
If the conditions are met (possibility of exemption under the reciprocity agreement and, in addition, a free quota for the member), the embassy, consulate, or its member is exempt from VAT on the intra-Community acquisition of a new vehicle.
The exemption for the intra-Community acquisition of a new vehicle is subject to the conditions stipulated in the respective reciprocity agreement.
If not all of the necessary conditions for (full) tax exemption are met, the VAT on the acquisition will be assessed in whole or in part by the Bundeszentralamt für Steuern (BZSt). If the conditions are no longer apply during the holding period, the BZSt will carry out a subsequent VAT assessment. For information on the various minimum holding periods, disposal periods, and special features regarding transfers, please refer to the applicable verbal note or contact the BZSt directly.
Regulations
Forms
Currently, the form 010166 is available for the tax declaration. You can download this form from the Form Center under „010166 - Umsatzsteuererklärung für die Fahrzeugeinzelbesteuerung für Diplomaten“.
Questions and Answers
What needs to be declared?
Intra-community acquisitions of new vehicles by embassies, consulates for or their foreign members not permanently resident in the Federal Republic of Germany must be reported to the BZSt.
When must the tax declaration be submitted?
In the cases of individual taxation of vehicles the tax declaration must be submitted no later than the 10th day after the end of the day on which the tax arose. The form 010166 is available for the tax declaration. The link to the form is located above the "Questions & Answers" section. The tax is due on the day the purchased vehicle enters Germany. If the vehicle is not registered within 10 days, it will not be objected if the declaration is submitted within 10 days of the registration date.
What is the content of the tax declaration?
- Name and address of the purchaser,
- Name and address of the supplier,
- Date of purchase (= the day the vehicle entered Germany, i.e., was transported or delivered here),
- Day of first commissioning,
- Mileage (or operating hours) on the day of supply,
- Vehicle type, vehicle manufacturer and the vehicle identification number.
Do I have to submit the invoice of the supplier for the purchase of the vehicle?
Yes, the invoice has to be submitted together with the tax declaration.
Do I have to submit a separate tax declaration for each new vehicle?
Yes.
Is my vehicle purchase exempt from taxation?
A general statement cannot be made on this. The requirements vary depending on the reciprocity agreement and are examined separately for each individual case.
What is the tax rate?
The general VAT rate of 19 % applies to the intra-community acquisition of new vehicles.
What do I have to do if the conditions for exemption no longer apply (in part) after the tax assessment?
If you have sold the vehicle before the expiry of the applicable minimum holding period or have terminated your diplomatic service, you must submit an amended VAT declaration.
