Tax on horse purchase in Germany?

[drkarins]

Found a lovely mare in Germany who has passed all of her PPE except for lab studies which should be back next week. Then I find out that we, as the buyer, have to pay the appx 19% VAT … that was a big (and expensive) surprise. Apparently we get it back (somehow?) at importation…?

Wondering if anyone has any experience with this tax and how long you can wait to import in order to get the tax back. It is a fair chunk of change … have a husband who is freaking out as silly me promised no hidden costs (I know, I big “no no” when it comes to horses).

Thanks!

[HealingHeart]

UnReal, where ever the money is the taxes follow. “Unbelivable”

It still bothers me to pay taxes on a used vehicle, its like double dipping, pay @ time of new buy, then everytime it changes hands, someone is collecting again and again

[Equibrit]

I can’t see that the purchase of a horse from Europe is any different to the purchase of any other goods for export. As somebody who makes a living importing goods from Europe, the vendor does not charge me VAT at all on exports.

Read this; http://www.zoll.de/english_version/a0_passenger_traffic/c0_holidays_germany/a0_tax_free_shopping/index.html

The seller will get proof of export when they ship the horse to you, so why would they charge the tax?
The only reason that you would be charged the tax, is if the seller does not expect to have proof of export and the German Tax collector will come after them for payment. If they are exporting the horse to you they will be in control of getting the relevant paperwork, and it should not be necessary to charge the tax and then refund it.

[Summit_Springs_Farm]

I have bought several horses from Europe with several different contacts and no one has ever mentioned any type of tax, FWIW

[JA1]

I did not pay VAT on the horse I imported. He was a stallion at the time and we waited about a month after purchase to ship him.

[Thomas_1]

VAT is chargeable on the full selling price if the seller is VAT registered.

[Coyoteco]

[QUOTE=Equibrit;4956579]
I can’t see that the purchase of a horse from Europe is any different to the purchase of any other goods for export. As somebody who makes a living importing goods from Europe, the vendor does not charge me VAT at all on exports.

Read this; http://www.zoll.de/english_version/a0_passenger_traffic/c0_holidays_germany/a0_tax_free_shopping/index.html

The seller will get proof of export when they ship the horse to you, so why would they charge the tax?
The only reason that you would be charged the tax, is if the seller does not expect to have proof of export and the German Tax collector will come after them for payment. If they are exporting the horse to you they will be in control of getting the relevant paperwork, and it should not be necessary to charge the tax and then refund it.[/QUOTE]

This is what I thought.

[Equibrit]

How likely is it that a US resident is VAT registered in Europe ?

http://www.gtai.com/homepage/investment-guide-to-germany/the-tax-system/value-added-tax/#c19096

"Trade with Non-EU Member States
Goods imported from non-EU states are liable to import VAT called import turnover tax (Einfuhrumsatzsteuer). The import turnover tax rate equals the VAT rates of 19 percent or 7 percent and is paid to the customs authority.

However, the import turnover tax on goods imported from non-EU states can be deducted as input tax (Vorsteuer). As a prerequisite, the company must have the necessary import documents with customs proof of payment (import declaration).

Exports are exempt from VAT."

Needless to say, if you are resident in an EU country the rules are different.

[sylvan_farm]

You will need to pay the VAT and it will be returned to you. The government charges the VAT, then when proof of export is provided, it is refunded. The same regulations apply to horses purchased from Canada (although many times it doesn’t happen). It’s a rule so people don’t avoid (;-)) paying taxes. If I recall, it can take a month or two.

[flyracing]

I’ve had this experience in South Africa (VAT) and Canada (it think it was called GST) paid the tax listed seperately as tax on the invoice. I recieved a check back 3-4 weeks later both times.

I don’t think any tax was paid on my horse from Holland.

[CB_VAT]

If you purchase the horse in a Farm name (LLC or Inc) that VAT is recoverable for you as a business. CB VAT, specializes in recovering VAT incurred by companies who conduct business on an international scale.
Feel free to call me 631-806-6631 or email me: brett@cbvat.com with any questions.
I work with CB VAT, but I am also a lifetime equestrian and frequently compete in both the hunters and the jumpers, so I am aware of how the business works. Always happy to help out should anyone have any VAT related questions/issues on the horse purchase/sell side of things.

[GiantHim]

I’m buying a horse from Holland right now but not sure if I want to import right away, Do I have to pay VAT? It’s a hefty 21%. I’m thinking of leaving him over there until I can travel to bring him home could be few months to a year. If I have to pay VAT do I need to export him within a certain time frame to get the VAT refunded?