How the fraud works
In a so-called “carousel” fraud, a vehicle passes through several companies in different EU countries. One of them collects the VAT, then disappears without paying it to the State. The vehicle is resold below market price.
A car, and the VAT to pay again?
Some cars reach the market with VAT that was never paid to the State. Before buying, a few simple checks protect you. NUR Label does them with you.
VAT on cars, in seven cards.
Swipe through the cards: the essentials, simply.
Warning signs
A price well below the market, an invoice “excluding VAT” without explanation, a recent or untraceable company, a seller in a hurry: take the time to check.
A new car bought in another country
A vehicle counts as new if it is less than 6 months old or has covered less than 6,000 km. You pay the foreign seller excluding VAT, and Belgian VAT (21%) is due in Belgium, even by a private buyer.
The e705 declaration
To register in Belgium a vehicle bought in another EU country, you need the customs e705 declaration (MyMinfin). For a new vehicle, the Belgian VAT is settled there. Without it, no registration.
A used car
Bought from a private seller, it carries no VAT. Bought from a professional, VAT is in principle included in the price, often under the margin scheme: the invoice must state it clearly.
For professionals
A company that knew or should have known it was taking part in a fraud chain can lose its right to deduct and be held jointly liable for the evaded VAT. Checks on the supplier and on the vehicle are part of the expected due diligence.
What NUR Label does
During check 4, “documents and consistency”, NUR Label matches the invoice, the certificate of conformity, the previous registration certificate and the e705 declaration to the vehicle. Any inconsistency is flagged in the report, with its source.
General information, to help you ask the right questions. For your specific situation, check with the Belgian FPS Finance or your accountant. Sources: European Consumer Centre Belgium · Moniteur Automobile · Forum for the Future, carousel fraud.
The right reflexes before paying.
- Ask for the full invoice: the seller’s name and VAT number, the chassis number, the VAT scheme applied.
- Check the seller’s VAT number on VIES, the European Commission tool.
- For a vehicle coming from another country, ask for the e705 declaration.
- Be wary of a price that is too low and of cash payment.
- Have the vehicle and its documents checked before paying.
Is the vehicle coming from abroad?
The Document Check compares its documents and invoice with the sources, from wherever you are, within the hour after we receive all the documents.
A price that looks too good sometimes hides VAT that was never paid. Check before you pay.
The information before paying.
Invoice, documents, origin of the vehicle: NUR Label compares them for you.