Vat On Cars In Spain?

Vat On Cars In Spain
VAT – In general, the VAT tax rate for vehicles is 21%. The VAT tax rate for vehicles for persons with reduced mobility is 4%.

Do you pay VAT on second hand cars in Spain?

If you buy a second hand car from a particular in Spain, you don’t have to pay the VAT but the ITP (Impuesto de Transmisiones Patrimoniales). This varies from region to region and is between 4% and 8% of the ‘official’ value of your car.

How much is sales tax on a car in Spain?

Value Added Tax – When you decide to buy a new car in Spain, you will have to pay a 21% of value added tax. This amount is already included in the final price the dealer shows you. When you buy a secondhand car, you also must pay Patrimonial Transfer Tax.

What is the VAT rate in Spain?

Spain VAT rates
Rate Type
21% Standard
10% Reduced
4% Reduced

.

How much VAT do you pay on a car?

VAT is charged at 20% on almost all new cars, whether they are bought upfront, on finance, or leased, Some people or businesses that are VAT registered can reclaim it, while some disabled drivers can avoid paying it in the first place.

Why are second-hand cars expensive in Spain?

Should I buy a new or a used car in Spain? – Vat On Cars In Spain Again, very much a case of horses for courses. Spain is the eighth largest producer of motor vehicles in the world and the second largest in Europe although 80% of the cars are exported. Buying a new car from a reputable dealer is probably the least risky option for a foreigner in Spain. A good option to look out for is the ‘KM 0′ car.

These are cars which have been registered by the car showroom but used only for test drives. They’re practically new but technically pre-owned and much cheaper than an officially new car. The second-hand car market in Spain is slightly different from the UK.

Prices are generally higher because people have tended to buy new cars and hang on to them for a long time so there are fewer of them available. As a guide, a five-year-old car will probably cost you about half of its original showroom price.

How does car tax work in Spain?

When do you have to pay it? – Car tax in Spain is due for payment each yea r. If you are using the agency Suma (for those living in the Alicante area), then payment can be made on their website or in person at their offices. Often, the tax collection agency responsible will send out reminders that the payment is due.

Do you have to tax a car in Spain?

Car Road Tax IVTM In Spain – An Expat’s Guide Expat Tips Published: 29 May 2020 13:45 CET Updated: 28 July 2022 13:45 CET The Low-Down On Spanish Car Road Tax Do you drive a car, motorcycle or another vehicle in Spain and are unsure about the legal requirement when it comes to road tax? Do you worry about being pulled over by the Spanish police and not having the correct documentation? Understanding the rules, regulations and other legalities to getting your vehicle taxed in Spain can be daunting when you first move here. However, you don’t need to be concerned as we have created this simple guide that will give you all the information you need to know about IVTM car road tax in Spain. You will find out about:-

  • What IVTM car tax is
  • How and where to pay your car tax in Spain
  • The cost of car road tax in Spain
  • When you have to pay your IVTM
  • How to check whether a vehicles road tax has been paid
  • Spanish road tax calculators
  • Suma car tax
  • Documentation required to get your car taxed
  • Second-hand cars and IVTM
  • Fines for not having road tax
  • And lots more.

Let’s get started and find out more. They say that only two things in life are certain – death and taxes. Well, I’m afraid the same applies here in Spain, although having said that, Spanish road tax (IVTM as it is known locally) is relatively cheap compared to the UK and many other countries.

  • What Is IVTM Spanish Road Tax and Why Do You Need It? The initials IVTM stand for Impuesto Sobre Vehículos de Tracción Mecánica , which is the Spanish term for vehicle tax, or as you would say in the UK – Road Fund Licence;

It amounts to the same thing. If you own any sort of motor vehicle including a  motorcycle and you’re going to be driving on Spanish roads, it is a compulsory tax – and a word of warning here – they can and will impound your vehicle if you are found without a valid car tax (IVTM) receipt.

  • So make sure you don’t give the traffic police the opportunity! How Much Does Spanish Road Tax Cost? We’ve already indicated that the price of car tax here in Spain is cheaper than in the UK, but whereas in the UK the price is calculated on the engine size, age of vehicle and emissions etc, here in Spain it varies according to the type of vehicle, horsepower ( Potentia Fiscal ), and the region in which it is registered;
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To give you some sort of an idea of cost, I used the Diesel y Gasolina calculator below, using a SEAT 1,600 cc, Altea Style as the vehicle. For Madrid, the cost was just €59. 00 for the year, Seville €59. 64, Zaragoza €35. 46 and Malaga €51. 12. Pretty cheap compared to the UK! Note that if you have more than 33% disability, you may be exempt from paying IVTM.

Spanish Car Road Tax Calculators There are two excellent websites available, which can tell you exactly how much the cost of the IVTM will be depending on the vehicle and where you live in Spain. Diesel y Gasolina – This is a great site with several tools including where to find your nearest ITV testing station, the cheapest petrol prices locally and a handy tool that tells you what your IVTM will be for any vehicle and region in Spain –  https://www.

dieselogasolina. com/calcular-precio-impuesto-circulacion-ivtm. html If you are located in the Alicante province, you can get an estimate using this tool from the tax collection agency there, Suma. https://www. suma. es/cuerpo_calc_imp. xhtml You can find out more about Suma further below.

  • When Is Car Tax Due In Spain? Payment is normally due at the end of April each year and the payment period stretches from March to May;
  • If you’re late with the payment, you can still apply but you will be charged a small fine, however, be warned – as we said earlier, if you are stopped by the  Spanish police and you don’t have a valid IVTM, your car can be towed away and impounded;

In some rare cases, your bank account can even be embargoed! You can pay your IVTM at your local town hall assuming that your car is registered in your local region or municipality. You can also pay at the bank. Once you are on the system and have paid IVTM, you just go along to the bank, and they will have the details on their computer system courtesy of your local authority.

  • It’s the same for the Spanish equivalent of your council tax too;
  • When you have paid your tax, you will not be given a tax disc to display as you used to be in the UK (remember those?);
  • So you must retain your receipt, and carry it with you when you drive, just in case you are asked to produce it by the police;

How Do I Pay My Car Tax in Spain? Townhall All town halls allow you to pay your vehicle road tax in person. To do so you will need to present certain documentation when making a payment. See the required documentation section below. Online It is possible to pay your Spanish road tax online, however, this will depend on the region you are in and whether your town hall has an online facility.

  • The first place to check is your town hall’s website;
  • Just Google for ” fuengirola ayuntamiento “;
  • Change ‘Fuengirola’ to your own town or city;
  • You should then easily find your town hall’s website;
  • Some banks may also provide you with an online facility to pay your road tax;

Check with your own bank’s website to see if they do. Tax Collection Agency If you are in the Alicante region you can pay your road tax in person at your local Suma office. See more about Suma below. Bank You can pay your road tax at many of the high street banks in Spain. These are:-

  • I. D ( NIE or CIF)
  • The vehicles registration document ( Permiso de Circulacion )
  • Technical Certificate ( Certificado de Características Técnicas )

Suma Car Tax In Spain Suma Gestión Tributaria or just ‘ Suma ‘ is an autonomous body which was developed in 1990 by the Diputación Provincial de Alicante. Suma is a public administration that manages and collects municipal taxes on behalf of the City Councils and other public administrations within the Alicante province. Calculating your Suma road tax – If you are located in the Alicante province, you can use the Suma website to calculate your IVTM vehicle road tax here –  https://www.

You can also set up a direct debit to pay it when it is due so you do not forget and incur any fines. Documentation Required When Paying IVTM When you go to the town hall ( Ayuntamiento ) or bank to pay your road tax you will usually need to present a few items of documentation along with your payment.

suma. es/cuerpo_calc_imp. xhtml Paying your Suma road tax online – You can also pay your car’s Suma road tax and any fines online at the web address below. https://www. suma. es/PortalWeb/localizadores/cuerpo_tramites_carta_pago. xhtml?idioma=en Pay your Suma car tax via instalments – Suma allows you to pay your road tax via a flexible payment plan to help you manage the costs.

  1. See the following page in English for your options and to set it up;
  2. https://www;
  3. suma;
  4. es/en/formas-pago Paying your Suma road tax at a local office – You can also pay your road tax at one of the 46 Suma offices in the Alicante region;

See the following page from Suma with a full list of all the offices. https://www. suma. es/en/oficinas Note that the SUMA service is only for those who reside in the Alicante province. Buyer Beware when Buying a Second-hand Car You should also be aware that when you buy a second-hand car if the previous owner did not have it taxed, you will become liable for any amount that is owed, so it’s a case of checking this out carefully or you could be in for a nasty surprise.

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If you’re buying a new car from a dealer, they will guide you through the process of applying for the first IVTM for that vehicle. If you are purchasing a second-hand car, it can be worth paying a small fee to a gestor who will check the vehicle documentation, any outstanding taxes and help you to register the vehicle.

In Spain, the registered vehicle owner on the 1st of January is the person who is liable to pay the road tax. If you have not received an IVTM bill for your vehicle in May, it may be an indication that the registration of the vehicle is not right and may be worth checking.

How can I check if the car tax on a vehicle has been paid? In Spain, you can get a vehicle report which in Spanish is called an Informe de Vehiculos. You can get either a standard report or a detailed report.

The standard report is free and will tell you things like when the vehicle was first registered and whether there have been any incidents with the vehicle which may prevent it from being transferred to another owner. The detailed report which costs just 8.

59 euros is more comprehensive and tells you who the owner is, where the vehicle is registered, mileage, ITV history and the number of owners. The detailed report will also tell you if there is any unpaid road tax.

You can visit the following official DGT web page for further information on vehicle reports. Reports can be done either online via the link below. https://sede. dgt. gob. es/es/vehiculos/informe-de-vehiculo/ Or in person at your nearest trafico office using the following form.

https://sede. dgt. gob. es/sede-estaticos/Galerias/modelos-solicitud/01/Mod. 01-ES. pdf Vehicles That Are Exempt from IVTM Some vehicles are exempt from Spanish road tax or are subject to a discount. These include vehicles that are used for public services, such as taxis, diplomatic vehicles, and cars over 30 years old which are completely exempt from IVTM.

Eco-friendly, electric or hybrid vehicles may also receive a reduction of up to 75%. Motorway Tolls There’s one other thing that you should be aware of too, and that is that whereas in Britain Road Fund Licence is what it costs to drive on UK roads, in Spain, on many of the motorways ( Autopistas ) you also have to pay a small toll for the privilege of using the motorway.

  1. Toll roads are normally designated by an “AP”;
  2. For example, the AP-7 on the Costa del Sol is just one example of a Spanish toll road;
  3. My Vehicle Is Not Going to Be on the Road;
  4. Do I Still Pay IVTM? If you will not be using the vehicle on the Spanish roads, you will not be liable to pay Spanish road tax;

You will need to apply for a Baja Temporal. This is the equivalent to the SORN ( Statutory Off Road Notice ) in the U. Learn more about deregistering your vehicle in Spain. Fines for Late Payment As mentioned previously, if you are late paying your IVTM, a small fine will be issued which is usually around 5% of the total.

  • If payment has not been made after 1 year, the penalty rises to around 20%;
  • FAQ – Frequently Asked Questions Q;
  • When is car tax due in Spain? A;
  • Payment is usually due at the end of April each year and the payment period stretches from March to May;

How much does road tax cost in Spain? A. It can vary depending on the vehicle’s engine size and the region in which you reside. Use the road tax calculators on this page to get an idea of the cost. How do I pay my car tax in Spain? A. There are different ways to pay.

  1. You can pay in-person at your town hall, at your bank and depending on where you live, you may be able to pay online with your town hall or bank;
  2. If in the Alicante region you can pay online or in-person at the Suma offices;

Is there car tax in Spain? A. Yes and nearly everyone has to pay it unless your vehicle is over 30 years old. Those with 33% or more disabilities may be exempt. Can I pay my Spanish car tax online? A. Yes, you can with Suma if in the Alicante region. Some banks and town halls also offer this facility.

  • Can I pay my road tax monthly in Spain? A;
  • Some provinces allow you to do this including Suma in the Alicante province;
  • Suma offers a flexible payment plan to help you manage the costs;
  • See the following page for full details  https://www;

suma. es/en/formas-pago Q. What happens if I don’t pay my road tax in Spain? A. In the first year, the fine is 5%. If the fine is not paid in the first year of non-payment, this is then increased to 20%. If you found this article of interest, please share it with your friends via the buttons below or why not join us on Facebook below? Related Articles Importing a Car or Other Vehicle Into Spain Driving Your UK Registered Car In Spain All About the Car ITV/MOT Test in Spain Things You Must Carry in Your Car by Law How to deregister a vehicle in Spain Expat Health Insurance Spain If you are an expat and are looking for private expat health insurance in Spain, please check out our range of  expat health insurance products.

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What is the VAT rate in Spain 2022?

Sales Tax Rate in Spain is expected to reach 21. 00 percent by the end of 2021, according to Trading Economics global macro models and analysts expectations. In the long-term, the Spain Sales Tax Rate – VAT is projected to trend around 21. 00 percent in 2022, according to our econometric models.

– Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Please Paste this Code in your Website Spain Sales Tax Rate – VAT In Spain, the sales tax rate is a tax charged to consumers based on the purchase price of certain goods and services. The benchmark we use for the sales tax rate refers to the highest rate. Revenues from the Sales Tax Rate are an important source of income for the government of Spain.

Actual Previous Highest Lowest Dates Unit Frequency
21. 00 21. 00 21. 00 16. 00 2000 – 2021 percent Yearly

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How do I avoid paying VAT on a car?

Can you claim VAT on second-hand cars?

Used Cars and VAT – If you are buying a used car in a private sale, there is no VAT to pay. If you are buying a used car from a dealer , then he or she will need to pay VAT on any profit made. This is known as the second-hand VAT margin scheme. However, the amount of VAT will not be itemised on the invoice and is of no concern to the buyer.

Can I claim VAT back on car?

Generally speaking, the purchase of any vehicle where there is any element of private use means any reclaim of VAT may be restricted. HMRC’s website offers the following guidance:

  • You may be able to reclaim all the VAT on a new car if you use it only for business.
  • The car must not be available for private use, and you must be able to show that it isn’t, e. it’s     specified in your employee’s contract.
  • Private use includes travelling between home and work, unless it’s a temporary place of work.

Due to the private use restriction, it is usual that no VAT can be recovered on the purchase of a car. However, you may be able to claim all the VAT on a new car if it’s mainly used as as taxi, for driving instruction and for self drive hire. If you are buying a commercial vehicle, you can usually reclaim the VAT. For example, a van, lorry or tractor. You can only reclaim the VAT if you use the vehicle in a business. If they’re used only for business, you can also reclaim VAT on:

  • motorcycles
  • motorhomes and motor caravans
  • vans with rear seats (combi vans)
  • car-derived vans

If you are in any doubt that a proposed vehicle purchase is eligible for a VAT reclaim please contact us for advice. Reclaiming the VAT when a claim is in doubt will only attract the attention of HMRC.

Do you pay VAT on second hand cars?

Used Cars and VAT – If you are buying a used car in a private sale, there is no VAT to pay. If you are buying a used car from a dealer , then he or she will need to pay VAT on any profit made. This is known as the second-hand VAT margin scheme. However, the amount of VAT will not be itemised on the invoice and is of no concern to the buyer.

Is VAT due on a used car from Europe?

VAT when buying a car in your own EU country – When you buy a new car from a dealer in your own EU country you pay VAT on it. If you use this car for your private purposes, this VAT will not be refunded (unless you sell it when it is still new to a customer in another EU country – see here for details).

  • When you buy an old car from a car dealer, VAT may be or may be not separately mentioned on the invoice;
  • This depends on how the dealer opts to calculate VAT on this car;
  • For explanation on VAT payment on used cars, see here;

When you buy a car from another individual in your own EU country, you do not pay VAT. Legal base: Articles 2, 311-332 of VAT Directive.

Do I charge VAT on car sale?

VAT when selling a car The sale of the car is exempt from VAT and any VAT incurred on the cost of selling the car, for example, auction fees, cannot be reclaimed (subject to the partial exemption de minimis rules).