Export car from UK to EU: duty, VAT and paperwork
Export car from UK to EU countries: UK export proof, 10% EU duty or zero with UK origin, import VAT, right-hand-drive registration and buyer demand.
· 8 min read
To export a car from the UK to the EU, the UK seller zero-rates the sale with proof of export, and the EU buyer pays 10% customs duty unless the car has UK preferential origin, plus import VAT at the destination country's rate. Then come registration taxes, right-hand-drive adaptations and a smaller resale market. The deal only works when the UK price is low enough to absorb all of that.
Do UK cars pay EU import duty?
Yes, unless they qualify as UK-originating under the EU–UK Trade and Cooperation Agreement (TCA). Since 1 January 2021, a car entering the EU from Great Britain is an import from a third country. The EU's standard duty for passenger cars is 10% of the customs value, which includes transport to the EU border.
The TCA removes that duty only for goods that meet its rules of origin, and only when the importer claims the preference with proof, usually a statement on origin made out by the UK exporter on the invoice.
Which UK cars can qualify for zero duty
Origin follows where the car was made, not where it was registered. Cars built in UK factories, and meeting the agreement's product rules, can travel duty-free with a valid statement on origin. A car built in Germany, Spain, Japan or the US that has spent ten years in Britain does not become British.
Ireland's Revenue has spelled out the consequence: cars of EU origin that were used in the UK, and cars from other third countries, do not count as UK origin and pay the 10% tariff when imported into Ireland. The same logic applies in every EU state.
Returned goods relief under Article 203 of the Union Customs Code can exempt goods that were exported from the EU and come back within three years in the same state, but it is narrow and usually depends on the original export documents. For a typical used car bought at a UK auction, assume it does not apply.
How is VAT handled when a UK car is exported to the EU?
On the UK side, a dealer can zero-rate a car sold for export to the EU, provided the car actually leaves the UK and the dealer keeps official or commercial proof of export, such as the export declaration and transport documents. Our guide to VAT on car exports outside the EU covers the mirror-image rules on the EU side.
On the EU side, the buyer pays import VAT when the car is released for free circulation, at the destination's rate (for example 19% in Germany, 21% in the Netherlands, 23% in Poland or 22% in Italy), on the customs value plus duty.
Two consequences for dealers:
- Import VAT is deductible for a VAT-registered dealer buying stock, so it is a cash-flow cost rather than a final cost.
- The margin scheme does not apply on resale. Under Article 316 of the VAT Directive, the option to apply the margin scheme to goods a dealer imports himself covers works of art, collectors' items and antiques, not used cars. An imported used car is therefore sold with VAT on the full price, which hurts if your buyers are private customers.
For car dealers
Know your margin before you buy
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Request accessExport car from UK to EU: a landed cost example
Assume a car bought in the UK for €15,000, with €900 of transport and insurance to an EU port, no proof of UK origin, imported into Poland:
| Line | Amount |
|---|---|
| Customs value | €15,900 |
| Duty, 10% | €1,590 |
| Import VAT, 23% of €17,490 | €4,023 (deductible for a VAT-registered dealer) |
| Polish excise (3.1% for engines up to 2,000 cc) | on the customs value plus duty |
| Registration, inspection, headlamp adaptation | local fees |
Even with the VAT recovered, duty and excise add more than €2,000 before the car is registered. Compare that with the price of the same car in your market before you buy; a free valuation shows it in a minute.
Which documents prove UK origin of a car?
A statement on origin on the commercial invoice is the normal proof. The UK exporter writes the TCA's standard text, identifies the goods and signs, and for consignments above €6,000 includes its exporter reference number. The importer can alternatively claim on the basis of "importer's knowledge", but then has to be able to demonstrate origin if customs ask.
For the rest of the file, the EU buyer needs:
- the V5C registration certificate (the UK seller notifies DVLA that the car has been permanently exported),
- the invoice or purchase contract,
- the export declaration reference from the UK and the EU import declaration,
- a certificate of conformity, as most EU registration authorities ask for one; our certificate of conformity guide explains the options,
- transport documents such as the CMR note or bill of lading.
Can right-hand-drive cars be registered in EU countries?
Yes. EU-type-approved right-hand-drive cars can be registered in continental EU countries, usually after adapting headlamps for right-hand traffic. In March 2014 the Court of Justice ruled in cases C-639/11 (Commission v Poland) and C-61/12 (Commission v Lithuania) that refusing to register right-hand-drive passenger cars unless the steering wheel was moved breached EU law.
National authorities still require the car to be safe for driving on the right. The Dutch RDW, for example, asks owners importing from countries that drive on the left to fit mirrors and lighting suitable for right-hand traffic. Expect headlamp work, and on some cars a change of rear fog lamp position.
The bigger issue is demand. Continental buyers pay noticeably less for a right-hand-drive car, and many will not consider one at all. The natural EU markets for right-hand-drive stock are Ireland, Malta and Cyprus; see car auctions in the UK for Ireland, Malta and Cyprus.
Export car from UK to Poland
Exporting a car from the UK to Poland means EU duty and Polish import VAT at 23%, then Polish excise duty: 3.1% for engines up to 2,000 cc and 18.6% above, with reduced rates for qualifying hybrids. Right-hand-drive cars can be registered after the 2014 ruling against Poland, but Polish buyers are price-driven and expect a discount for right-hand drive. The trade works mainly for left-hand-drive cars that UK dealers want to sell on and for vans. More on the Polish market in export car to Poland.
Import car from UK to Italy
Importing a car from the UK to Italy follows the same customs route: 10% duty without UK origin, Italian import VAT at 22%, then registration through the Italian motor vehicle office with a technical inspection. Italy has no tax on the scale of the Dutch BPM, but budget for the provincial transfer tax, inspection costs and any CO2-based levy that applies to the car. Unusual British models, classic cars and left-hand-drive cars are the realistic opportunities.
When the deal still works
After Brexit, the UK-to-EU flow narrowed to a few profitable niches:
- UK-built cars with clear origin proof, where duty falls to zero.
- Left-hand-drive cars in the UK, which are hard to sell there and easier to sell on the continent.
- Classic and collector cars, where price gaps are large and buyers accept paperwork.
- Right-hand-drive cars for Ireland, Malta and Cyprus, where buyers want them.
Mainstream right-hand-drive used cars for continental buyers rarely survive the duty, the VAT on full price and the RHD discount.
Frequently asked questions
Do UK cars pay EU import duty?
Yes, 10% of the customs value for passenger cars, unless the car qualifies as UK-originating under the EU–UK trade agreement and the importer claims the preference with valid proof. A car built in the EU or elsewhere and used in the UK does not count as UK origin.
How is VAT handled when a UK car is exported to the EU?
The UK seller zero-rates the export with proof that the car left the UK. The EU buyer pays import VAT at the destination rate on value plus duty, deductible for VAT-registered dealers. The car is then resold with VAT on the full price, not under the margin scheme.
Which documents prove UK origin of a car?
Usually a statement on origin written by the UK exporter on the invoice, including an exporter reference for consignments above €6,000. Alternatively, the importer can claim based on its own knowledge, but must be able to prove origin.
Can right-hand-drive cars be registered in EU countries?
Yes. The Court of Justice ruled in 2014 that Poland and Lithuania could not refuse right-hand-drive cars. Expect to adapt headlamps and sometimes mirrors and fog lamps for driving on the right.
Is it worth exporting cars from the UK to the EU after Brexit?
Only in niches: UK-built cars with origin proof, left-hand-drive cars, classics, and right-hand-drive cars for Ireland, Malta and Cyprus. For mainstream cars, duty, full-price VAT and the right-hand-drive discount usually remove the margin.