Car export makes your car more affordable too
Cross-border car trade moves used cars to where demand is highest. That lowers residual value risk, and with it purchase prices and lease rates for everyone.
High time to clear our international trade routes
With more than 2 million used cars sold in 2024 in the Dutch market, you might wonder why we should promote car trade at the European level. Yet, smoothing import and export flows benefits both the market and our wallets.
Law of supply and demand
When you look at the used car market through a European lens, it’s clear that supply and demand aren’t balanced on a national level.
The best destination yields the best price
In short, cross-border car trade enables a natural and optimal reallocation of goods in circulation. Since the best price is paid in the most suitable market, a well-functioning trade system reduces residual value risk. Lower risks translate directly into lower purchase prices and sharper (lease) rates for car mobility — a win for consumers.
Bad reputation
Despite the many benefits of international trade, car export often carries a cloud of suspicion. The sector is frequently associated with shady car markets in Central Europe; just a small step away from assumptions about black or criminal money. When something does go wrong, the headlines are quick and loud. With this kind of reputation, it’s no surprise that sectors like government and banks are wary of collaborating. Add to that the complicated issue of BPM tax refunds, and even BOVAG finds car export a thorny subject. As an industry, we want to get rid of the bad apples — but how do we do that without losing the good ones?
What can you do?
Instead of playing the victim and hoping not to run into the “wrong buyer”, the tax authorities ask us to be diligent. Both in contact and contract, we must ensure all the boxes are ticked. It’s a time-consuming administrative hassle, but it’s the only way to prove you’re acting in good faith when applying the VAT zero rate. In practice, this proves tricky for several reasons. Here’s what dealers have told me:
- The tax authority’s exact requirements are unclear.
- Creating KYC profiles is time-consuming.
- Proper administration requires up-to-date legal knowledge.
- Export processes are complex and not always well-managed.
- Repeating KYC checks is desirable, but who does that for known buyers?
- There are no systems that support compliance.
- Export files are not stored digitally or securely.
It’s an industry-wide problem
Can you really mitigate risks of VAT fraud and money laundering by handling your compliance duties solo? The obstacles car dealers face are real and not easily solved individually. However, as an industry, there is something we can do — for example, by using digital solutions that support and automate all the points mentioned above.
Novatrade24 ID: proof of good conduct
The solution offered by Novatrade24 helps individual dealers tick every box for a compliant export transaction, while also cleaning up the industry as a whole. Within a tightly controlled community, you do business with buyers who voluntarily undergo regular checks and ratings. Novatrade24 handles this for you. Independently. This prevents an overly eager salesperson from turning a blind eye just to secure a bonus. The bad actors get filtered out, and the Novatrade24 ID becomes a “proof of good conduct.”
Stronger together
The real value of Novatrade24 lies in the community. Every buying party goes through the process for each transaction — not just yours, but also those of your peers. Together, that amounts to far more checks than you could manage alone. This generates a wealth of data on profiles and transactions, offering a much clearer picture of buyer behavior. For every suspicious situation, participating dealers receive a proactive alert. That means you’re better informed, earlier and more often, and can prepare accordingly.
Support when things go wrong
If something still goes wrong, you’re not on your own. All data collected on the Novatrade24 platform is available to support you in your defense. The platform’s processes and services were developed in collaboration with experts, lawyers, and industry veterans to maximize your protection. The test is whether you “knew or should have known” that a transaction was connected with VAT fraud (CJEU, Kittel; CJEU, Mecsek-Gabona). Your position is much stronger if you can show that you took every reasonable step to check your buyer. This insight comes from our collective data — and it’s there for you.
Join us!
If there’s anything in our power to strengthen our reputation, this joint solution seems both realistic and full of potential. You’re warmly invited to join us on this journey!