A BTW-auto (VAT car) is a used car sold with 21% Dutch VAT (btw) shown separately on the invoice. These are usually ex-lease cars or cars previously owned by a company. That is the difference with a margin car (margeauto), where the dealer only pays VAT on their margin and no VAT appears on the invoice (see margin scheme). Between private persons, VAT plays no role at all.
Why it matters when buying or selling
- Business buyers: if you are registered for VAT and use the car for your business, you can reclaim the VAT on a BTW-auto. Compare prices excluding VAT.
- Private buyers: you pay the price including VAT and cannot reclaim anything. Compare a BTW-auto and a margin car on the total you actually pay.
- Listings: check whether a price says 'incl. btw' or 'excl. btw'. On a price excluding VAT, another 21% comes on top.
- Selling privately: if you bought the car as a private person, you sell it without VAT, even if it was once a BTW-auto.
- Company use: if you drive an ex-lease car as a company car, also look at the company car tax (bijtelling).
Not sure an asking price is fair? Use the fair price check.