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VAT and Destination Charges for ED?

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Old 01-10-2015, 10:50 AM
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Default VAT and Destination Charges for ED?

I am probably going to answer my own questions in this posting but it is worth asking in case I can save some money. I had read a posting by one forum member stating you shouldn't pay destination fees and they had proven that by showing it documented in 2 different places. Unfortunately, this is contradicted by the 2015 European Delivery Customer Participation Agreement, "Purchase Terms: You agree to purchase your vehicle at the Audi European Delivery Program price established by a participating Audi Dealer, including destination charges and local taxes/titling fees and you agree to drive your vehicle to an authorized Audi drop off location within 90 days of your delivery date in Ingolstadt, Germany."

Which leads to my next issue with the VAT. After carefully rereading TIME89's posting it seems to come down to does your dealer trust you are coming back in 90 days? If not it's in their best interest to have you pay the VAT to ensure you come back and they do not end up paying the VAT themselves. I do not know if I can convince my dealer to drop it but I do think it is curious neither BMW nor Volvo engage in this practice. Perhaps Audi US customers are known scofflaws .

Put down a deposit for a Mythos Black S3 today and am excited to take delivery with my family some time in the last week of April or first week in May. We will be driving from Inglostadt, Germany to Randers, Denmark with side trips in Denmark. We will drop it off in Hamburg, Germany when we come back.
Old 01-11-2015, 11:19 AM
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Originally Posted by Madone2015
I am probably going to answer my own questions in this posting but it is worth asking in case I can save some money. I had read a posting by one forum member stating you shouldn't pay destination fees and they had proven that by showing it documented in 2 different places. Unfortunately, this is contradicted by the 2015 European Delivery Customer Participation Agreement, "Purchase Terms: You agree to purchase your vehicle at the Audi European Delivery Program price established by a participating Audi Dealer, including destination charges and local taxes/titling fees and you agree to drive your vehicle to an authorized Audi drop off location within 90 days of your delivery date in Ingolstadt, Germany."

Which leads to my next issue with the VAT. After carefully rereading TIME89's posting it seems to come down to does your dealer trust you are coming back in 90 days? If not it's in their best interest to have you pay the VAT to ensure you come back and they do not end up paying the VAT themselves. I do not know if I can convince my dealer to drop it but I do think it is curious neither BMW nor Volvo engage in this practice. Perhaps Audi US customers are known scofflaws .

Put down a deposit for a Mythos Black S3 today and am excited to take delivery with my family some time in the last week of April or first week in May. We will be driving from Inglostadt, Germany to Randers, Denmark with side trips in Denmark. We will drop it off in Hamburg, Germany when we come back.
Congratulation on your S3 ED Order.
You have to pay destination fee. (I believe only Mercedes wave this charges).
No VAT check should be written to your dealer, according to head of Audi ED Department.
Old 01-12-2015, 11:38 AM
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Yeah I think on Audi's website, they state Destination Charge is paid by owner. As far as VAT, from most of the forum members their dealerships only collected the VAT check, but never deposited it. Now if your dealership is a little shady, they may cash it out first and then pay you back later. I would speak to your dealership to make sure, cuz for us we didn't have an extra $10k laying around for that purpose.
Old 01-21-2015, 05:11 AM
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During my 2012 delivery of S5, I wrote a check for the VAT and gave it to the dealer, who said they would return it to me, uncashed, when the car arrived. They did that. It was no problem. OTOH, BMW never required a VAT check.
Old 01-21-2015, 07:59 AM
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Last October the Dealer required a check which they cashed. They cut us a check on our return.
Old 02-21-2015, 05:15 AM
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I have been negotiating with five dealers. One requires a check which they will cash, three require a check which they will not cash, and one requires no check. On an A6 this is about $15,000.
Old 02-23-2015, 05:17 PM
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I was prepared to write a check and ask that it not be cashed when I ordered my S6. But the topic was never broached when I paid for the car, and so never had to write it.

I think Audi used to require the dealers to collect the VAT in the past, but currently do not.

That said, I expect the selling dealer may be on the hook if you don't bring the car back so it can be imported into the US, so they are probably making an individual decision on who they ask for a VAT check.

We pre-paid VAT on the last car we bought via factory delivery, and it was even listed on the Munroney sticker on the car when it was delivered to our local dealer, though this was 15 years ago, and with Porsche. It was refunded after we picked up the car locally.
Old 02-26-2015, 04:57 PM
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to all of you one more time:

Jan 22, 2014 at 5:12 AM

Hello,

Yes, we do not require that the dealer collects the VAT check. However, should the dealer not collect the check and the customer stays abroad longer than 90 days they are subject to the 19% fee. Most dealers prefer to collect the money as a safe keeping however it is returned immediately after the car is dropped off at port.

Please let me know if you have any other questions! My contact information is below if you prefer to speak over the phone.

Thank you!

Amanda Jasionowski
VIP/European Delivery/Audi exclusive Sales
Experiential Marketing

Audi of America, Inc.
Marketing
2200 Ferdinand Porsche Drive
Herndon, VA, 20171
United States of America
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