- Purchasing a new vehicle
The purchase of a new vehicle for a consideration in another Member State and its import to the Czech Republic by any person (i.e. a VAT payer, a VAT non—payer, or a private individual) is subject to a separate regime and, according to Section 2(2) of the VAT Act is always subject to tax in the Czech Republic.
In this respect, a car is considered to be new if:
- it has less than 6,000 km on the clock
- it was purchased within six months of first being out into operation.
A person who is not a taxpayer and purchases a new vehicle in an EU Member State is obliged to file a tax return with the locally competent revenue office; a copy of the proof of purchase and Notification of the Purchase of a New Vehicle (the form is available from revenue offices) must be attached to the tax return. After the tax authority has assessed the tax, the VAT is payable within 25 days of the date of the assessment. A new vehicle with proof of payment of VAT can then be registered at the transport inspectorate.
- Purchasing a used vehicle
This purchase is subject to the same procedure as the purchase of any other goods within the EU. If a used vehicle is purchased in the EU by a person who is not a taxpayer from a person registered in a Member State, he pays the price, including VAT at the rate applicable in the Member State in which the car is purchased. The purchaser is not then required to pay VAT in the Czech Republic.