An accident, a major breakdown or the need for an additional vehicle at home: there are many reasons that can lead you to buy a second-hand car. Used vehicles are undoubtedly a great alternative to save some money and get rid of, for example, the payment of registration tax. In fact, there are dealers, companies and fairs specialized in the sale of this type of vehicle that, however, will not exempt you from paying other kinds of taxes if you opt for one.
As a general rule, the buyer of a second-hand car must assume the payment of 21% of its value as VAT, although, in some cases, they will have to pay another opposing tax.
The answer is simple: it all depends on who the seller is. If you are going to buy the car from a dealer or a company that does not have to be exclusively dedicated to the sale of vehicles, then you do have to pay Value Added Tax. In this case, both parties will have to sign a contract and the selling company will have to issue you an invoice that reflects the payment of this tax. For example, if you have bought a used vehicle valued at 5,900 euros, 4,661 will be net and 1,239 taxes.
On the other hand, if it is a sale transaction between individuals, the buyer is exempt from paying VAT. Regardless, the person who acquires a second-hand vehicle will have to pay the Property Transfer Tax (ITP). The Autonomous Communities are in charge of collecting this fee from the buyer who, depending on his place of residence, will pay between 4% and 8% of the market value of the vehicle.
As a buyer, you can also find yourself with the Special Regime for Used Goods (REBU) when you purchase the vehicle from a sales company. If the selling company takes advantage of this special regime, it means that part of the VAT was deducted at the time of buying the car. In this way, you will only have to pay 21% VAT on the part that corresponds to the amount not deducted from the value of the vehicle you are interested in.
In these cases, the company and the individual must also formalize a contract. In the same way, the company will issue an invoice to the buyer that reflects the non-itemized price that he has paid for the car. An amount will appear with "VAT included", so as not to reveal the profit margin that the seller has obtained.
