When a dealer buys a car from a private person, there is no VAT on it for the dealer to deduct. Under the margeregeling (VAT margin scheme), the dealer only pays VAT on its margin when reselling: the difference between the purchase and sale price. Such a car is called a margeauto. VAT is not shown separately on the invoice, and business buyers cannot reclaim it. Most used cars that consumers buy from a dealer are margin cars.
The alternative is the BTW-auto, usually an ex-lease or company car, sold with 21% VAT shown separately. In a private-to-private sale there is no VAT at all.
Why it matters when buying or selling
For a private buyer it makes little difference: you pay the total price. For a business owner the difference is significant, because the VAT on a BTW-auto can be reclaimed. So always compare prices on the same basis. Ads on Sell Your Car state the price type: margin, VAT or private. If you're unsure whether an asking price is fair, use our fair price check or browse comparable used cars.