Importing a Car from Canada to Europe (EU) in 2026: 0% Duty under CETA or 10%, 17–27% VAT and Homologation

A car from Canada means left-hand drive, brands Europeans know and, often, trims that are not sold locally. But the landed price in the European Union depends on more than the car and the freight: import duty and VAT are due at the border, and registration requires homologation. The key point for buyers is the Canada–EU free trade agreement (CETA): for cars of Canadian origin the duty is 0% instead of 10%. Below we break down what you pay, when CETA applies and how to work out the amount in advance. Every rate has been checked against primary sources — the links are in the text and in the summary table.

1. What EU clearance consists of: duty and VAT

The EU has a single customs tariff, so the duty is the same in every member state. It is charged on the customs value — the price of the car plus transport and insurance to the place where it enters the Union (Union Customs Code, art. 71). Then come two charges:

• Import duty — 10% across heading 8703: petrol, diesel, hybrid and electric cars (TARIC). For cars of Canadian origin it is 0% under CETA — see below.
• VAT — at the rate of the country of import, from 17% to 27% (EU VAT rates). It is charged on the customs value together with the duty and the cost of delivery to the first place of destination in the country of import (Directive 2006/112/EC, arts. 85–86).

The charges are calculated in sequence: duty first, then VAT on an amount that already includes the duty. There is no EU-wide excise on passenger cars, but some countries levy their own taxes and fees at first registration — we calculate those for the specific country.

When the duty is 0%: the CETA agreement

The Comprehensive Economic and Trade Agreement between Canada and the EU (CETA) has applied since 21 September 2017 — still provisionally, but the trade part, tariffs included, is in effect (European Commission: CETA). The EU phased out its car duty in stages: according to TARIC, the preferential rate for Canada is 0% from 1 January 2024 for combustion-engine and hybrid cars and from 1 January 2022 for electric cars (TARIC, 8703 80 10).

There is one strict condition: the car must be of Canadian origin under the CETA rules. For heading 87.03 this means that non-originating materials — those from neither Canada nor the EU — may not exceed 45% of the car's ex-works price; until September 2024 the threshold was 50% (CETA Protocol on rules of origin, Annex 5, footnote 5; the seven-year period runs from the start of provisional application — CETA, art. 30.7.3(d)). Manufacturers also have an annual quota of 100,000 vehicles under a looser rule (Annex 5-A, Table D.1), but it requires a Canadian export permit, so we do not count on it for private imports.

Origin is proven by the exporter's origin declaration on the invoice or another commercial document; a Canadian exporter includes its Business Number. The declaration is valid for 12 months, and the importer submits it to customs when claiming the preference (CETA Protocol, arts. 18–21 and Annex 2). Transit through third countries does not break origin as long as the car is not worked on along the way and stays under customs control (art. 14).

Buying from a Canadian dealer does not change origin: if the car was built in the USA, Mexico, Japan or anywhere else outside Canada and the EU, the duty is 10%. We check where a specific car was built by its VIN and the manufacturer's documents before purchase. If Canadian origin cannot be documented, it is more honest to budget at 10% from the start.

Worked example

Customs value (car + shipping and insurance to an EU port) of €30,000, imported into Germany at 19% VAT:

• car of Canadian origin: duty €0, VAT 19% × 30,000 = €5,700 — total charges €5,700;
• car built outside Canada: duty 10% = €3,000, VAT 19% × 33,000 = €6,270 — total €9,270.

The difference is €3,570, which is why origin is worth establishing before purchase rather than at customs. The example is simplified: the VAT base also includes delivery to the first place of destination within the country of import.

2. VAT: the rate of the country where the car is released

There is no single "European" VAT. Standard rates in 2026 range from 17% in Luxembourg and 18% in Malta to 27% in Hungary; for example, 19% in Germany, 20% in France, 21% in the Netherlands, 22% in Italy and 23% in Poland (Your Europe: VAT rates). VAT is paid in the country where the car is released for free circulation. If the port is in one country and registration in another, the car can travel from the port under customs transit and be cleared in the country of registration — VAT is then charged at that country's rate (Directive 2006/112/EC, arts. 60–61).

3. Relocation: importing without duty or VAT

If you are moving your normal residence to the EU, a personal car can be imported free of duty (Regulation (EC) 1186/2009, arts. 3–8) and VAT (Directive 2009/132/EC). The conditions:

• you have lived outside the EU for at least 12 consecutive months;
• you have owned and used the car for at least 6 months before moving;
• it is imported within 12 months of the move;
• for 12 months after release it may not be sold, hired out or transferred without notifying customs — otherwise duty becomes payable.

A car bought specifically for import does not qualify — the normal rates apply.

4. Homologation: COC or individual approval

Paying customs is not enough — to be registered, the car must meet EU technical requirements. Cars type-approved for Europe come with a certificate of conformity (COC). North American cars are built to their own standards and usually have no such COC, so the route is individual approval, either EU-wide or national (Regulation (EU) 2018/858, arts. 44–45). The owner or importer applies, and the national authority of the country of registration carries out the check.

In practice the most common work is on lighting (headlights, indicators, rear lights), sometimes the speedometer scale; compliance with emission requirements must also be shown. The scope depends on the model, so it is worth assessing before shipping rather than after the car reaches port.

5. Summary of 2026 rates

6. Documents and shipping

Customs and homologation require a complete set of documents:

• the invoice and purchase agreement with a confirmed price; for the 0% rate, the CETA origin declaration on the invoice;
• the Canadian title (proof of ownership) and the export declaration;
• the bill of lading and insurance policy — they prove the route and the costs included in the customs value;
• the car's technical data for individual approval.

The car travels by sea in a container to a European port; the cost and transit time of the ocean leg depend on the line and port, so we quote them for each specific shipment — more in the shipping section. We check the car's VIN history before purchase — how that works is described in our article on VIN history checks.

7. How Canada Motor House helps

Canada Motor House sources the car in Canada, checks where it was built by VIN and the manufacturer's documents before purchase, and prepares the export paperwork — including the CETA origin declaration if the car is Canadian-built. We will tell you which EU adaptations are likely for the specific model and plan the route for your country of registration. Vehicle prices are on request; the customs calculator gives a guide to the charges, and current stock is in the catalogue.

Planning to import a car from Canada into the EU? Send a request — we will check the origin of the specific car and calculate the duty, your country's VAT and shipping.

Rates are as of October 2026, based on TARIC, the CETA text, EU legislation and European Commission VAT data; they may change, and the final calculation is made on the date of clearance.