It's not just VAT, many countries have additional taxes on cars. Extreme example: Denmark, where the tax on a car purchase is something like 180%. So basically,

It's not just VAT, many countries have additional taxes on cars. Extreme example: Denmark, where the tax on a car purchase is something like 180%. So basically, you have to import the car if you buy it in another country, which may mean quite a big cheque to your country's tax office. In the end, the system of taxes and various other obstacles is such that it's mostly not worth the trouble to buy a car in another country and import it home.