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Euro Delivery limited to 6000km or you have to pay your VAT

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Old 01-26-2024, 01:03 AM
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Mike981S
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Unhappy Euro Delivery limited to 6000km or you have to pay your VAT

I noticed that in the European Delivery papers you sign, you now have to limit yourself to less than 6000km or you have to pay the German VAT. Given how much Porsches cost and the current 19% VAT, that is quite an expensive proposition!

I was planning on a 5-6 week road trip, and even during my 3 week ED road trip in 2016, I did over 4500miles (over 7000km). So I fear it will be tight!

Does anyone have any idea why they introduced this change? Is that a policy change by Porsche? Or something that changed in the German/EU law for Euro Delivery cars?

Last edited by Mike981S; 01-26-2024 at 06:27 AM.
Old 01-26-2024, 02:32 PM
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Angryinch
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I have no insight to the reason or logic, but I did see that on the ED docs that I signed last Spring as well. Not something I would want to challenge as the tax is big money. There is also a time limit, if I recall correct, was it 3 months?

Perhaps a question for Joey?
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Mike981S (01-26-2024)
Old 01-30-2024, 11:55 AM
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signes
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This is not a change in the last 8-10 years. There has always been a km limit. As I understand it German law past a point will consider the car sold and eligible for local tax. Same reason (in part) for the time limit. They used to offer 6 months insurance but I understood that was also driven by changes out of their control. Maybe changed the km limit but I always recall as 6k km.
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Mike981S (01-30-2024)
Old 01-30-2024, 12:32 PM
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Originally Posted by signes
This is not a change in the last 8-10 years. There has always been a km limit. As I understand it German law past a point will consider the car sold and eligible for local tax. Same reason (in part) for the time limit. They used to offer 6 months insurance but I understood that was also driven by changes out of their control. Maybe changed the km limit but I always recall as 6k km.
Interesting. They definitely did not enforce that limit in 2016.
Old 01-30-2024, 03:45 PM
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If you drive enough it will get close. I dropped my 4RS off after 12 days with 4760km. But in general most people will not even get close to that 6000km. Most used Porsche 911s or GT cars that are 1-2 years old don’t even have that many KMs, which is an absolute shame honestly
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Mike981S (01-31-2024)
Old 01-30-2024, 05:09 PM
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signes
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Originally Posted by Mike981S
Interesting. They definitely did not enforce that limit in 2016.
They did, maybe got lucky. Here is the language from the ED form from that year:



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Mike981S (01-31-2024)
Old 01-31-2024, 12:58 AM
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Originally Posted by disden
If you drive enough it will get close. I dropped my 4RS off after 12 days with 4760km. But in general most people will not even get close to that 6000km. Most used Porsche 911s or GT cars that are 1-2 years old don’t even have that many KMs, which is an absolute shame honestly
Well done . I did 3000 miles on my 2013 BS during 2 weeks and 4600 miles on my 2016 GT4 during ED. So I definitely am getting close. And I will be having the car for 6 weeks this time around.

Originally Posted by signes
They did, maybe got lucky. Here is the language from the ED form from that year:

Good that I wasn't reading that section back then and that Porsche AG did not pay attention either.
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Nine_thousand (01-31-2024)
Old 01-31-2024, 03:23 PM
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That would have been an expensive OOppppsssieee. VAT is huge. Wonder why it wasn't enforced if its a thing. Scare tactic so you don't push the envelope too much while there?
Old 01-31-2024, 04:36 PM
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There isn't a formal obligation to record and report mileage at export to the government. More if it is audited or you get caught. I've never read the fine print in the insurance but also wonder if they can deny coverage if you go over. I know another person who did and never had an issue but I wouldn't try it now. Over $70k on a new RS which would really sting.
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Mike981S (02-01-2024)
Old 02-01-2024, 12:40 PM
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Nine_thousand
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Originally Posted by Mike981S
Well done . I did 3000 miles on my 2013 BS during 2 weeks and 4600 miles on my 2016 GT4 during ED. So I definitely am getting close. And I will be having the car for 6 weeks this time around.
Six weeks!? That’s spectacular!!

My first two times doing ED (2017 and 2021) were each a week, maybe 9 days. I’m planning on two weeks for my trip in April/May.

Six weeks would definitely solve all of my “which alpine passes and/or race tracks??” dilemmas… just take your time and enjoy ALL of them! Maybe on a future trip, when the kids are old enough to fend for themselves.

Good for you, that’s an awesome way to do European Delivery!
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Mike981S (02-01-2024)
Old 02-01-2024, 05:45 PM
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Originally Posted by Nine_thousand
Six weeks!? That’s spectacular!!

My first two times doing ED (2017 and 2021) were each a week, maybe 9 days. I’m planning on two weeks for my trip in April/May.

Six weeks would definitely solve all of my “which alpine passes and/or race tracks??” dilemmas… just take your time and enjoy ALL of them! Maybe on a future trip, when the kids are old enough to fend for themselves.

Good for you, that’s an awesome way to do European Delivery!
Yeah, the kids are finally old enough to fend for themselves (in their 20s). During the 2012 and 2016 EDs we only took 2 weeks/4 weeks and had to organize friends and relatives and my wife joining later and leaving earlier in 2016. This now gives us more time to do more things than just driving.
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Nine_thousand (02-02-2024)
Old 02-03-2024, 01:49 AM
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Originally Posted by signes
There isn't a formal obligation to record and report mileage at export to the government. More if it is audited or you get caught. I've never read the fine print in the insurance but also wonder if they can deny coverage if you go over. I know another person who did and never had an issue but I wouldn't try it now. Over $70k on a new RS which would really sting.
My guess it they now strictly record it at your drop off for delivery and shipping back stateside. Easy to see paperwork showing starting mileage at pickup and what car has at time of drop off and how long its been since factory release. Then bill to the owner likely becomes due at shipping before export release. No payment then probably no car I'd speculate and your car stays at port indefinitely already paid for also as payment is collected I believe at purchase and before they give you the keys.
Old 02-03-2024, 02:21 AM
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Originally Posted by mdrobc1213
My guess it they now strictly record it at your drop off for delivery and shipping back stateside. Easy to see paperwork showing starting mileage at pickup and what car has at time of drop off and how long its been since factory release. Then bill to the owner likely becomes due at shipping before export release. No payment then probably no car I'd speculate and your car stays at port indefinitely already paid for also as payment is collected I believe at purchase and before they give you the keys.
You already pay the VAT as deposit before you go and pick up the car. They will reimburse you when you get back (I don't remember if they actually cash it or just hold on to the check). So theoretically, it would be easy for them to keep the VAT and pass it on to the German tax authorities.
Old 02-03-2024, 08:25 PM
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Originally Posted by Mike981S
You already pay the VAT as deposit before you go and pick up the car. They will reimburse you when you get back (I don't remember if they actually cash it or just hold on to the check). So theoretically, it would be easy for them to keep the VAT and pass it on to the German tax authorities.
Okay that makes sense. Never done one so was speculating but sounds like they are now enforcing the VAT and mileage a lot more on customers during ED.

Old 02-03-2024, 11:02 PM
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Originally Posted by Angryinch
That would have been an expensive OOppppsssieee. VAT is huge. Wonder why it wasn't enforced if it's 'll a thing. Scare tactic so you don't push the envelope too much while there?
Theory - Whoever handles the paperwork when the vehicle is returned has the ability to help you a little on the kilometers, but no ability to help you with the date if you are over six months.


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