Actually the european car comes to the show floor with VAT already paid by the store selling the car. VAT is end user tax, it's paid by last one in the chain. S

Actually the european car comes to the show floor with VAT already paid by the store selling the car. VAT is end user tax, it's paid by last one in the chain. So it's only after the shop sells the car when they get the VAT back from the sale (and they get back only what VAT they paid before).