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Unfortunately, that is very easy to circumvent. Rich people usually own companies which made them rich in the first place. They can easily buy cars in the company name and write not just the VAT off, but income taxes as well.
Not really. You have to provide your own business ID in order to not be charged VAT, and they gets noticed and registered.
You'll have to then explain why the Ferrari, specifically, was a business expense. If the tax administration doesn't think it's a good reason, you then have to pay the VAT anyway.
And don't even get me started on the fucking bureaucratic stupidity that is importation or I'll have to take my blood pressure medication.
Source: starting up my own business in Finland. Rip 25.5%VAT. Fuck NCP.
Oh here in Estonia you just declare the VAT and you'll be good. They COULD look up what's going on, but the Lamborghini Urus I saw registered as "for work driving only" the other day, begs to differ. You can look up vehicle data for all Estonian reg vehicles and oftentimes you'll see them as being company cars without an exception for private driving (which would cost extra taxes, based on engine power)
I should have elaborated.
In the EU, if buying from another EU country, you just put in your VAT# to exclude VAT. But your country's tax administration can then ask to justify a business expense. You can only claim VAT paid on foreign (non -EU) imports once doing taxes for reimbursement if it was paid.
I have a feeling Estonia's tax administration doesn't ask as many questions as the Finnish one.
That said, there's usually an actual exception for luxury cars, if it's for your sales people (or if you do the sales, yourself). Luxury branding can be used as a "marketing tactic" due to "presentation". Basically, if you're meeting with a potential customer, looking like you're successful technically makes you look more reliable. Essentially business attire for your personal transportation.
Not saying it's necessarily true, but it's actually a really old thing done in many countries.
In Estonia with a company car it's basically "Oh I use it to visit clients" if you ever get asked. Doesn't matter what your company does and if sales is involved - you're just visiting established clients from time to time for business reasons, instead of having, idk, an online meeting, or sending an email.
And nobody at the tax administration seems to care if you visit your customers in a Dacia or a Porsche. And if someone DOES ask, the whole presentation thing you pointed out, would be an excellent excuse.