Posted on Nov 11, 2013
CW2 CH-47F Pilot
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I have heard rumors that US personnel who PCS to Germany do not have to pay the 19% VAT tax.  Is it true that because of that rule, German-made vehicles are much cheaper for us overseas than they are back in the US?  Or does it end up costing about the same?
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SSG(P) Ait Instructor
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Ok, ok, let me help everyone here and dispel all the rumours. As the SFC mentioned above, please be specific when you say phrases like "German Made". The correct terms that should be used are "US Spec" and "German Spec". Again, most automobile aren't even made in their home country. Here is a good source to read http://www.nhtsa.gov. It's the bible to importing autos that aren't US Spec'd. Read it carefully though, it's like an Army Regulation, you have to read all of it, not just the parts you like. For autos made within the last 10 yrs, there isn't a lot to be changed over. Again, emissions being the biggest part of it. I would like to point out that most  German Spec'd  autos (Ford, BMW, VW, Opel) are being manufactured with the US in mind. BMW  and Ford has already changed over to the US required 5mph bumpers. Windshields should no longer be an issue as long as they are E and DOT marked. I would say that the first thing you do is to see if the car (German/Euro Spec) you want is on the petition list. If it is, then problem one solved. If not, it can cost up to $2000 to get it petitioned. That means the NHTSA checks to see what it takes to bring the car up to US Specs. Gosh, I'm rambling, just check out the website if your intentions are to buy a German/Euro Spec vehicle in Germany and want to take it back to the US. If you want to purchase a US Spec BMW or Volvo then there will be no issues purchasing though a Military Sales establishment.


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CPT Space Operations Officer
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I, too, will chime in on Pentagon Car Sales, very professional team.  I just bought a 2013 328i from them through their Military Sales program, and it is definitely the best car purchase I have ever made....coupled with a loan from Service Credit, I ended up saving about $10,000 on the BMW and got an interest rate of 1.49.

I would also suggest checking out their stock of demo cars, they have a ton of them all over Germany/Italy and you will save even more money.  The banks view them as new car loans, so you get a good interest rate (dependent upon credit). The Demo cars are typically fully loaded with packages as well.   BMW (not sure about Audis or VWs) will also ship your car port to port for free when you PCS, which is really great considering it costs about $2,000 to ship a second car.
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SGT Marcus Logan
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first you have to take in to count the conversion rate between the Euro and the Dollar. In order not to pay the 19% tax, it all depends upon were you are shopping since some places don't accept the Value Added Tax (VAT) form. If they do then yes it is some what cheaper for service members overseas. but like i said before the biggest thing that is going to effect the difference is going to be the conversion rate. I hope it helps.
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CW2 CH-47F Pilot
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Good to know thank you for the info!
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SSgt Forensic Meteorological Consultant
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The VAT while I was in Germany was only 13%. That has increased 6%. And the conversion on the vehicle to make it right for the USA.
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