Within the same Member State, as a rule every supply performed by a taxable person acting as such is subject to VAT, therefore if the supply of the second-hand vehicle (i.e., a means of transport not considered "new" in the sense of paragraph 2.1) is performed by a taxable person that person will charge VAT on the sale of a second-hand vehicle irrespective of the capacity of his customer. If the supplier is however a non-taxable person (e.g., a private individual) the supply of the second-hand vehicle will not be subject to VAT.
Between two Member States, if the second-hand vehicle is supplied, and in connection with that supply it is transported from one Member State to another, the supply will have a cross-border character and will give rise to taxation in the Member State of destination if both the supplier and the customer are taxable persons.
If the supplier is a taxable person for VAT purposes and the customer is a private individual, the supply will not be considered an intra-Community transaction and will be subject to VAT only in the country of the supplier. Therefore, in the situation e.g. of a private individual residing in France who decides to purchase a second-hand vehicle from a German supplier who is a taxable person, the supply will be charged with VAT at the rate applicable in Germany, regardless of whether the vehicle is transported to France by the supplier or the customer.
If the supplier and the customer are non-taxable persons (in particular, private individuals), there is no VAT[6][7].
