The evolution in the industry of transportation due to the new advancements in the mode of transportation such as bullet trains, bigger and bigger cargo ships and airplanes that can carry heavy loads from one country to another quicker than ever in the past. This has made the transportation services faster, cheaper and accessible to all.
Such developments in the field of transportation combined with the high-speed internet and telecommunication have made it possible for people sitting in different countries can move their goods with the minimum of efforts. Due to this reason, many people around the globe are involved in shipping car from the US. People want to ship cars from the US for both business and personal use.
As goods are being transported within a country on a larger scale now the government of each country has set some rules and regulation on the import and export of the goods. In order to balance the import and export in the country government impose the tax on goods and services.
“ Tax is any amount of money paid to the government”.
The reason government imposes taxes on the imported goods is to protect the local companies from the international competition so that they can have enough time to develop and grow. There is another reason to impose taxes is the save the local industry because they are the main source of employment in the country and these industries need to be sustained for the better future. These taxes are also imposed to save the environment. When Government find out certain goods do not adhere to the environmental standards set by the government then taxes are imposed on such goods in order to protect the environment
For this reason, different kinds of tax need to be paid to ship a car from the US, such as import duties or import tax ( these duties are subject to different factors such as the type of goods, origin of goods and the price of the goods). These type of import duties are also subject to free trade agreement as well under which import duties are exempted completely or up to some extent. VAT (value added Tax) is also imposed when you ship a car from the US.
Let’s suppose you live in Germany and you want to ship a car from the US then you need to take some precautionary measure to ensure the safety of your vehicle. The first step would be to find a reliable service provider to ship a car from the US without any issues.
When your car arrives at the port from the US it requires proper documentation to enter the country. Among this documentation which is necessary to ship a car from the US are VAT-number and Custom Exemption for import duties & VAT (it can only be availed if you can prove that you lived in the US for more than 6 months or if you are not planning to keep the car for more than 6 months).
If you are not eligible for exemption from import duty and VAT to ship a car from the US then you need to pay import duties and tax.
This tax rate differs depending on the type of the vehicle which you want to ship from the US.
- For trucks, the import duty rate is 22%
- For passenger cars, it’s 10%