Selling cars to customers abroad: distance sales and rights
Selling cars to customers abroad: the 14-day withdrawal right, legal guarantee, VAT, delivery and registration help for consumers in other EU countries.
· 8 min read
Selling cars to customers abroad is legal and increasingly common, but a sale to a consumer in another EU country concluded online or by phone is a distance contract. The buyer then has a 14-day right of withdrawal, the EU legal guarantee applies, and if you target their country, their national consumer protections can apply too. Plan delivery, registration documents and guarantee handling before you advertise abroad.
Selling cars to customers abroad: distance or showroom sale?
Whether the sale is a distance contract decides whether the buyer can withdraw, so it is the first thing to get right. Under the Consumer Rights Directive 2011/83/EU, a distance contract is one concluded without both parties being physically present at the same time, using only means of distance communication up to and including the moment the contract is concluded: email, phone, online checkout, a signed PDF.
| Situation | Distance contract? | Withdrawal right |
|---|---|---|
| Customer sees the car online, agrees by email, pays by transfer, car delivered | Yes | 14 days |
| Customer reserves online, then visits, inspects and signs at your premises | No | None under the directive |
| Customer visits, test drives, signs later by email from home | Usually yes, if the contract is concluded exclusively at a distance | Check national case law |
| Sale to a business buyer | Not a consumer contract | None |
If you want to avoid withdrawal rights, the cleanest route is to have the contract signed at your premises when the customer collects. Many cross-border buyers do travel to collect, especially for higher-value cars.
Does a buyer have a 14-day right of withdrawal on a car bought online?
Yes, a consumer who buys a car through a distance contract has a 14-day right of withdrawal without giving any reason. Under Article 9 of the Consumer Rights Directive, the period runs for 14 days from the day the consumer, or a third party they nominate other than the carrier, takes physical possession of the car.
Points dealers should know:
- Information duty. You must tell the buyer about the right of withdrawal before the contract. If you do not, the withdrawal period is extended by 12 months (Article 10).
- Return costs. The consumer bears the direct cost of returning the car if you informed them of this. For goods that cannot normally be returned by post, such as cars, you must give an estimate of the maximum return cost.
- Diminished value. The consumer is liable for loss in value caused by handling beyond what is needed to establish the nature, characteristics and functioning of the car (Article 14). Driving the car on holiday for a week is beyond that; a short test drive is not.
- Refund. You must refund the price and the standard delivery cost within 14 days of the withdrawal, but you may withhold the refund until you have received the car back or evidence that it has been sent.
Price the withdrawal risk into distance sales. A returned car costs two transports, possibly re-registration, and weeks of lost selling time.
For car dealers
Know your margin before you buy
MyCarDealer compares any car from an auction or listing with the market in your country and shows the net margin after VAT, transport and costs – and the maximum bid.
Request accessLegal guarantee for foreign buyers
The legal guarantee applies to consumers abroad exactly as it does at home. Under the Sale of Goods Directive (EU) 2019/771, the seller is liable for lack of conformity that becomes apparent within at least two years of delivery. For second-hand goods, member states may allow the parties to agree a shorter period of not less than one year, and many dealers use this for used cars where national law allows it.
Within the first year, the defect is presumed to have existed at delivery unless the seller proves otherwise; some member states extend that period to two years. Remedies are repair or replacement first, then a price reduction or termination.
Which country's law applies matters as well. Under the Rome I Regulation (EC) No 593/2008, if you direct your activities to the consumer's country, for example with adverts or a website in their language aimed at their market, choosing your own country's law in the contract cannot deprive the consumer of the mandatory protection of their home law. If you actively sell into a country, learn its guarantee rules. Our article on the legal guarantee on used cars in the EU compares them.
How do I deliver a car to a customer in another country?
You deliver a car to a customer in another country either by professional transport to their address or by handing it over at your premises for them to drive home on temporary plates. Each option shifts different risks.
- Delivered by carrier. You book the transport and the car remains at your risk until the consumer, or someone they nominate, takes physical possession. Under the Consumer Rights Directive, risk passes to the consumer on delivery, unless the consumer chose a carrier you did not offer. Document condition with photos and a delivery protocol signed by the customer.
- Collection by the customer. The customer collects and drives home on export or transit plates, or takes the car on a trailer. Risk passes at handover.
- Your own driver. Possible on trade plates in some countries, but check whether your plates and insurance are valid abroad.
Transport costs and options are covered in our guide to car transport in Europe. For temporary plates, see export plates in Europe.
Who registers the car for a foreign buyer?
The foreign buyer registers the car in their own country, because registration is tied to the owner's residence. Your job is to hand over a complete document set that their registration office will accept:
- the original registration certificate (or both parts, where the country issues two);
- the certificate of conformity, or proof of type approval;
- the sales invoice showing VIN, price and VAT treatment;
- the latest roadworthiness test certificate, if valid;
- service history and keys;
- deregistration confirmation, if you deregistered the car before export.
Many dealers who sell abroad regularly offer a paid registration service through a local agent. It removes the buyer's main worry, but agree clearly what is included, especially registration taxes such as BPM in the Netherlands or NoVA in Austria, which the buyer owes.
VAT on sales to consumers in other EU countries
VAT on a used car sold to a consumer in another EU country is normally charged in the dealer's own country. Under Article 35 of the VAT Directive, the distance-selling rules do not apply to second-hand goods and second-hand means of transport sold under the margin scheme, so a margin-scheme car is taxed on your margin at your national rate. A VAT-qualifying car sold to a consumer is also taxed with your local VAT.
The exception is a new means of transport: a car supplied within six months of first entry into service or with no more than 6,000 km, which is taxed in the buyer's country. Our guides on selling used cars to EU consumers abroad and on new means of transport VAT explain both cases.
How are guarantee claims from foreign customers handled?
Guarantee claims from foreign customers are handled under the same rules as domestic claims, but distance makes repairs harder, so agree the process before the sale.
- Ask for evidence first: fault description, photos, a diagnostic report from a local workshop.
- Decide repair location. Bringing the car back is your right in principle, but the cost of transport for a repair under the legal guarantee is yours. A repair at an authorised workshop near the customer, paid by you, is often cheaper.
- Agree costs in writing before work starts.
- Use an extended warranty product with Europe-wide cover for higher-value cars; it turns guarantee claims into an insurer's problem.
Pricing matters here too. If a foreign customer finds your car because it is priced right for their market, that sale is worth the extra effort; MyCarDealer shows what the car sells for in other countries, so you can see whether advertising abroad is worth it, and you can request dealer access.
Frequently asked questions
Does a buyer have a 14-day right of withdrawal on a car bought online?
Yes, if the buyer is a consumer and the contract was concluded exclusively at a distance. The 14 days start when the buyer takes physical possession of the car. If you did not inform them of the right, the period is extended by 12 months.
How do I deliver a car to a customer in another country?
Either by a professional carrier to their address, with the car at your risk until delivery, or by handing it over at your premises for collection on temporary plates or a trailer. Document the condition at handover in both cases.
Who registers the car for a foreign buyer?
The buyer registers it in their country of residence. The dealer provides the registration documents, certificate of conformity, invoice and test certificates; some dealers offer a paid registration service through a local agent.
How are guarantee claims from foreign customers handled?
Under the same EU legal guarantee as domestic claims: at least two years, which for used cars can often be shortened to one year by agreement. Agree the repair location and costs in writing; a paid repair near the customer is often cheaper than transporting the car back.
Which VAT applies when I sell a used car to a consumer in another EU country?
Normally your own country's VAT: on the margin for margin-scheme cars or on the full price for VAT-qualifying cars. Only new means of transport, up to six months old or with no more than 6,000 km, are taxed in the buyer's country.