Why do Czechs buy cars from Germany?
German cars have a reputation in the Czech Republic for quality, well-equipped and well-maintained cars. The market is large and the offer varied – from luxury limousines to ordinary family cars. In addition to the technical condition, the transparent German system of regular technical inspections (TÜV) is also an attraction, thanks to which the condition of the vehicle can be better verified.
On the other hand, however, you have to take into account that importing a car from Germany is not just about buying and transporting it. It is a legal process that involves commercial contracts, tax obligations, insurance, technical inspections and registration. Without knowing the rules, you can easily get into trouble as a buyer – for example, buying a car with an illegally rolled-up speedometer, not having the necessary registration documents or paying VAT twice.
What about VAT on cars from Germany?
As both Germany and the Czech Republic are members of the EU, importing a car from Germany is governed by the rules for intra-community trade. The basic question is whether German VAT, Czech VAT or both are payable on the purchase.
A new vehicle (within 6 months of first registration or with less than 6,000 km) is always subject to VAT in the country where it is imported, i.e. the Czech Republic. The seller should invoice without German VAT and the buyer will pay it to the Czech tax office (currently 21%).
A used vehicle from a VAT payer in Germany can be sold with German VAT, but if the transaction is set up incorrectly, the buyer may pay the tax twice. For non-VAT payers (private sales), VAT is not addressed, but the risks of lack of guarantees and consumer rights are all the greater.
Legal practice shows that some sellers require a refundable deposit for VAT, which is only refunded upon proof of registration of the car in the Czech Republic. If the buyer does not know his rights, it may happen that he will not get the money back. That is why it is advisable to have a model purchase contract and legal supervision over the transaction.
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What documents do I need for a car from Germany?
You cannot register your vehicle in the Czech Republic without the complete documents. The basic documents are the German small and large technical certificates (Zulassungsbescheinigung Teil I and II). It is also advisable to obtain:
- TÜV report on the last technical inspection
- Service booklet or service records
- Purchase contract in German with translation for the Czech authorities
- COC certificate (certificate of conformity) – if not, it will be necessary to pass the import STK
- Certificate of insurance for transfer plates
Before signing the contract, also check the VIN to make sure it is not from a stolen car, that it matches the documents and that the car is not encumbered by a lease or foreclosure. Databases like Cebia or carVertical can help you with this.
From our experience with our clients, we also recommend to contract a mileage guarantee and absence of legal defects. If fraud is later proven, you are in a stronger position in a claim or lawsuit.
How to import a car from Germany to the Czech Republic
There are two options: either bring the car yourself or use a transport service.
To transport the car yourself, you need to arrange for a transfer plate (Kurzzeitkennzeichen) with the German vehicle registry. To obtain these, you will need your deregistered documents, a TÜV report and the insurance you have arranged. The plates are usually valid for 5 days.
The other option is a transport company, they will sort everything out and bring the car on a flatbed. This option is more expensive, but you will eliminate the paperwork and the risk of uninsured driving.
During the transport, keep the bill of sale, car documents and insurance with you. If you are stopped by the police without full documentation, you risk having your vehicle impounded and being fined.
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How to register a car from Germany in the Czech Republic
In the Czech Republic, you must then register your car with the relevant vehicle registry (traffic inspectorate). You need:
- both German registration cards
- COC certificate or import registration certificate
- emission measurement report
- the purchase contract
- vAT receipt (for new cars)
- iD card
- green card
When you register, you will pay an administrative fee of approximately CZK 800 and, if applicable, an ecological tax (for EURO 0-2). You must register your vehicle within 10 working days, otherwise you will be fined and banned from driving.
What to look out for with German cars
Buying a car from Germany can be a great choice, but also a very expensive life lesson. On paper, the car often looks flawless (low mileage, not crashed, garaged), but the reality can be different. Among the most common problems encountered by the law firm’s clients are twisted speedometers – increasingly common on imports, although this is a fraud offence in Germany and the Czech Republic. Another problem is concealed accidents – a car may have perfect paintwork but be a total wreck underneath. Our clients also often deal with legal defects where, for example, the car is still under lease, has a bank lien or even belongs to a completely different person. False registration certificates or export documents can prevent you from registering the car in the Czech Republic.
Although Czech and German law protects the buyer, the burden of proof often lies with the buyer. If you do not have a thoroughly written contract and evidence of the condition of the car when you bought it (photo documentation, inspection reports, service history), the claim will be complicated and often unsuccessful.
Another risk is the language barrier. Some contracts contain wording that looks innocent when translated but actually deprives you of rights, typically limiting the seller’s liability for hidden defects. The only sure way to avoid this is to have a lawyer check the contract before signing.
A story from our practice:
A former client of ours looked for a one-year old BMW 3 Touring in Munich, as advertised by the first owner, with 42,000 miles on it. The salesman spoke broken English, the contract was in German, which the client did not speak. He bought the car, paid cash and brought it to the Czech Republic.
However, when registering the car at the office, he discovered that the car had a duplicate VIN. The same number was registered to a car in Italy that was reported stolen. The client could not register the car and the German dealer stopped communicating.
He therefore contacted our law firm. We discovered that there was a hidden clause in the purchase contract limiting the seller’s liability to just €500 and that legally the sale was listed as a “private party sale”, even though it was in fact a car dealership – a typical ploy to reduce legal liability.
As a result of our actions, including working with a German lawyer, they were able to prove fraudulent behaviour and our client recovered the full amount. However, without the lawyer’s intervention, he would have lost the car and the money.
Therefore, never pay a deposit without a signed contract. Use a vetted database to verify the VIN. Insist on all original documents. Sort out the VAT before signing the contract. Finally, consider legal representation, especially for more expensive cars. A lawyer can spot unfavourable clauses in the contract, negotiate better terms for you and take care of any disputes.
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Summary
Importing a car from Germany can yield a quality and well-equipped car at a bargain price, but it is a legally complex process where a mistake means risking financial loss and the inability to register the vehicle. It is necessary to set the VAT correctly depending on whether it is a new or used car, complete the documentation (both German technical certificates, TÜV report, COC sheet, purchase contract including translation, insurance), check the VIN and the legal purity of the car. The Kurzzeitkennzeichen (valid for 5 days) or a transport company can be used for the transfer. Registration in the Czech Republic requires import registration, emission measurement, proof of VAT payment (for new cars) and is required within 10 working days of import. Common risks include twisted speedometers, concealed accidents, legal defects (leasing, pledge, theft), false documents and unfavourable contract clauses. Protection is provided by a thorough purchase contract, photo documentation, inspection of all documents and ideally legal oversight of the transaction.
Frequently Asked Questions
What documents do I need to import a car from Germany?
The two German roadworthiness certificates (Zulassungsbescheinigung Teil I and II), the purchase contract (ideally in German and with an official translation), the TÜV report on the last technical inspection, the COC sheet (certificate of conformity), the certificate of insurance for the transfer plates and, if applicable, the service book or maintenance records are essential. When travelling to the Czech Republic, it is also necessary to have the transfer plates and insurance.
Is VAT always payable when buying a car from Germany?
Not always. For a new car (within 6 months of first registration or with less than 6,000 km), VAT is always paid in the Czech Republic. For used cars from a German VAT payer, German VAT may be payable, but if the transaction is set up incorrectly, there is a risk of double taxation. For private sales between non-taxpayers, VAT is not an issue.
How long does it take to register a car in the Czech Republic?
If you have complete documentation and the vehicle meets the technical conditions, registration can be processed within one day at the traffic inspectorate. The legal deadline for registration is 10 working days after import. If you have missing documents, need an import registration certificate or other complications, the process can be prolonged.
What to do if a car from Germany has hidden defects?
Even if you buy from the EU, you have the right to make a claim, but the burden of proof is on you. Photographic documentation of the condition at the time of purchase, technical inspection reports and service history will help. If fraud is proven (e.g. a twisted tachometer, a concealed accident), you can exercise your rights under the hidden defects clause and claim repairs, a price reduction or withdrawal from the contract. In practice, legal representation is often necessary.
Do I need a lawyer to buy a car from Germany?
It’s not compulsory, but it’s very useful, especially on more expensive cars. A solicitor can detect unfavourable clauses in the contract, ensure the legal purity of the car, check the documents and help prevent fraud. In the event of a dispute, the buyer is then in a much stronger position.