How much VAT for car parts?

How much VAT for car parts? The turnover of car parts in our country is very large. This proves the growing demand caused by the daily use of a large number of motor vehicles by our compatriots. It concerns not only passenger cars, but also delivery and special vehicles. Unfortunately, along with the increase in mileage, the risk of failure in each car increases, and the repair requires appropriate parts.

Due to the high demand, on the map of our country we can find many wholesalers dealing in retail and wholesale of parts for Japanese, Korean , European and American cars . Will we have to pay VAT for components for motor vehicles? What will his height be?

Sale of car parts with 0% VAT

If we run an automotive wholesaler, there may be cases in which we will ship car parts to other countries. If these are third countries, i.e. outside the European Union or the European Economic Community, then it will be necessary, in addition to VAT, also appropriate customs duty. The situation is slightly different with the ordered Kia partswe ship to another member state of the European Union. Then we can apply a preferential 0% rate. However, it is important that our contractor is an entrepreneur and has a given EU VAT number. If he is not allowed to carry out intra-Community transactions, then the application of this solution is impossible. If we do not know the actual state of affairs, then it is best to check it on the European Commission’s website. All we need to do is provide our contractor’s tax identification number and country of origin. The system will generate information for us, thanks to which we will be sure about the transaction.

When using the intra-Community supply of goods during the sale of car parts, one should remember, however, about the necessity to fulfill a much larger number of conditions. The most important of them is to document that the parts actually crossed the border of our country and ended up in another Member State. This can be done with the recipient’s declaration or a printout from the logistics system of the shipping company that delivers the order. You should also submit a special declaration, in which we indicate that we have carried out intra-Community transactions in a given settlement period.

As you can see, trading car parts is quite complicated in terms of taxation. However, this also applies to other products. All entrepreneurs have to keep their accounts scrupulously, because it is very easy to make a mistake these days, which can be quite costly. When buying parts for passenger cars, we should always ask the seller for an invoice. It will be a confirmation of our transaction, enabling possible future claims for complaints.