What VAT is due when buying a car? In this edition of U-talk our question comes from Cecile: "I live in Arlon, close to the Belgian border with Luxembourg and I plan to buy a car there. The retailer told me that I would need to pay VAT for this purchase in Belgium. Is he correct? Luisa Laranjo from Europe Direct provided the answer: If you buy a new car, you must pay VAT when registering it in your country of residence - Belgium in your case - at the VAT rate applied there. A new car is defined as one that has been driven for fewer than 6,000 kilometres or that is less than six months old. If you buy a used car from a professional dealer you will pay VAT only in the country where you buy it, Luxembourg in your case. If you wish to buy a used car from a private individual, you don't pay VAT either in the country where you bought it or in your home country. For more information about the EU, call 00 800 6 7 8 9 10 11 or check out the website: europa.eu/youreurope If you would also like to ask a question on U-talk, click on the button below. More about: Cars, European Union, Taxes