[help] They don't know how to sell M3 to my friend

[janez09]

Hi!

My friend ordered M3 (dual motor) in Europe/Austria. The thing is, he is working for UN and they are exempt of VAT.
They told him they don't know how to sell him the car without VAT. Order cancelled and he was redirected to Tesla Netherlands - same answer

Does somebody know someone that resolved this problem? Maybe somebody from Switzerland (they also have United Nations). Quick help appreciated, otherwise he'll have to go for ICE instead :/ Thx!

 

[Alfred]

I found this here. According to that in Switzerland only incomes (salaries e.g.) are tax free. VAT is not mentioned. Maybe in Vienna they have some additional privileges, but that may be limited to selected shops as mentioned here. According to that last note they are entitled (in Austria) to import tax-free goods. So it might be possible to buy a car tax-free abroad. I remember that possibly Tesla in Tilburg would know something as many cars to Eastern Europe were delivered from there. Otherwise I would enquire directly with the employing UN agency locally.

 

[Mark_T]

As far as I know, your friend will need to talk to the UN Procurement Division about approved car vendors and if Tesla is not on the list then that is the end of the road.

I'm also not so sure that your friend is entitled to buy a car without VAT personally, it would have to be a UN purchase to qualify as far as I know...

At a personal level he may benefit from tax-free earnings, but when he spends his money on personal purchases, food etc. he pays VAT just like anyone else.

 

[Dangerous Fish]

I think there could be another way he can do this other than get the UN to buy it for him.

He should be able to buy it himself and then claim the VAT back, but as with anything involving the EU and tax he needs to be prepared for a lot of form-filling and waiting before he gets the money back into his account. You mention Austria, so maybe if you Google 'U43 tax exemption form VAT' it will help.

Bottom line is he will probably have to pay full price now and sort out the refund after. Tesla won't be able to assist in this process.

 

[janez09]

UN is not buying for him. It is personal purchase. And UN staff is exempt of tax. ICE sellers know this (how it is done) and they can sell him the car without tax. And he doesn't have to fill any tax refund papers.. real simple deal.

The problem is that Tesla doesnt know how to make a receipt without VAT for him

I think I found how it should be done:
BMF - VAT-Refund for Diplomats and International Organisations
Tnx @Electric Dream
Now I wonder if Tesla office in Vienna can do this?

 

[Dangerous Fish]

OK this is interesting. Yes, it seems there's a new ruling so Austrian Diplomats can get tax relief at the point of purchase. Not surprising Tesla staff don't know about that, I'd suggest!

"A completely new rule concerns the tax-exempt purchase of a motor vehicle from an Austrian car dealer, since – contrary to current practice – this rule provides for a direct VAT exemption and the standard consumption levy. This essentially contributes to speeding up tax relief. As regards the tax-exempt purchase of a motor vehicle, the following procedure is applied:

• For the tax-exempt purchase of a motor vehicle the claim form U45 is required, on which – inter alia – the car dealer, the type of the car and the purchase price must already be indicated. The form may be completed and printed (e.g. by the car dealer) by computer via the homepage of the Federal Ministry of Finance. The completed form, which is certified by the diplomatic mission, must be filed with the Federal Ministry for Foreign Affairs which issues the certificates (for the entrepreneur and for the registration authority).
• The certificate for the entrepreneur is handed over to the Austrian car dealer. On the basis of this certificate the sale is exempt from value added tax and exempt from the standard consumption levy.
• The certificate for the registration authority is handed over to the registration authority which enters the blocking note in the registration certificate.

Also the purchase of used cars can be effected tax-exempt by following the same procedure.
If the motor vehicle is not bought but leased (rented), the tax exemption applies only to the standard consumption levy. Value added tax is imposed on the respective lease payments. This VAT is refunded by way of the refund procedure (in the case of diplomats within the frame of the maximum refundable amount) on based on the invoices."

So looks like all he needs to do is point them to that and he should be good to go.
The only potential issue I can see is finding someone in Tesla to do the admin for this. As they are not a traditional 'dealer' that might involve some effort on his part.
Hope he enjoys his 3!

 

[.jg.]

OK this is interesting. Yes, it seems there's a new ruling so Austrian Diplomats can get tax relief at the point of purchase. Not surprising Tesla staff don't know about that, I'd suggest!

Yes - the information from the Austrian authorities that Electric Dream posted is here (in English):
VAT Refund for Diplomats and International Organisations - Motor vehicle
and the form (in German) is here: Formulars U45
It seems fairly straightforward to complete the form.

 

[lonevvolf]

I am in the same situation - the sales rep at Vienna Tesla has informed me that they can issue the proforma invoice without VAT when the time comes (waiting for Y). Would be interested to talk to your friend to see how their experience went/is going.

 

[Collier007]

Reading this helps me understand why some in the UK wanted out of the EU market.... so much bureaucracy.

 

[ElectricDrive]

Hi there, happy I came across this thread while googling. We have a very similar situation. Last year in November I began communicating with Tesla Vienna about purchasing a Model Y LR tax free due to my wife being exempt from tax. I was told it was no problem and that they would need either the U45 or U100 form. So in January of this year we ordered the car with agreed delivery in November of this year (2022). The Tesla Advisor I had been dealing with up to this point just left the company and the new TA now suddenly claims that they can only accept the U45 form.

The problem is that my wife has a green legitimation card and hence can only provide the U100 form (she does not have diplomatic status). (We are double checking this).

The U45 form is for locally purchased tax-exempted vehicles, but this form, as far as I know, is only applicable to persons with diplomatic status.

The U100 form is for importing a vehicle, and this applies to both diplomats as well as international staff of international organizations.

Pretty disappointed with Tesla. This has been the worst car purchase experience so far (the new TA also made some claims that turned out to be wrong after I insisted he double check, he claimed we could not change the color on the order without applying the new vehicle price. Turned out we could. ).

We didn't have these problems at Volvo Vienna, who ordered the car for us from Sweden in order to be able to apply the U100 form. So the local Volvo Vienna dealer acts as an intermediary.

I asked Tesla Vienna if they could do that and their response was that their finance department only accepts the U45 form.

So looks like we will be forced to cancel the order and purchase from a different manufacturer.

Unless someone here has some experience or advice on what could be done?

 

[ElectricDrive]

Yes - the information from the Austrian authorities that Electric Dream posted is here (in English):
VAT Refund for Diplomats and International Organisations - Motor vehicle
and the form (in German) is here: Formulars U45
It seems fairly straightforward to complete the form.

BTW the original page has moved to here: VAT-Refund for Diplomats and International Organisations

 

[ElectricDrive]

@lonevvolf were you able to sort out the purchase? Unfortunately I cannot send private messages. Hoping someone can give me advice/help (see post #10 above).

 

[lonevvolf]

@lonevvolf were you able to sort out the purchase? Unfortunately I cannot send private messages. Hoping someone can give me advice/help (see post #10 above).

Yes - I sent you a PM in the TFF Forum, please call me and we can chat.

 

[abm77]

m the VAT back, but as with anything involving the EU and tax he needs to be prepared for a lot of form-filling and waiting before he gets the money back into his account. You mention Austria, so maybe if you Google 'U43 tax exemption form VAT' it will help.

Bottom line is he will probably have to pay full price now and sort out the refund a

Yes - I sent you a PM in the TFF Forum, please call me and we can chat.

Hello,
I have a similar problem. I work in the Italian army and I have a service passport here in Estonia. Since, if I undestand well i need to by the Tesla from Netherland )-:
How do I order without paying the VAT? Should I order from Netherland or could I choose the closer Finland? Thank you for the help you may give me. I'm struggling to get info but it seems no one knows what are the steps to carry out in order to buy without VAT.
BMW, for example, has a page for that reason (https://www.bmw.ee/et/topics/offers-and-services/bmw-special-sales/bmw-diplomatic-sales.html)
Thanks again.