Used cars do not have VAT

Let us remember a little the history of the taxes that are paid in our country.

The latest VAT increase raised the general rate from 18% to 21% and the reduced rate from 8% to 10% and came into force on September 1, 2012. This directly affects an increase in all markets of 3 points, and precisely what we are going to deal with in this post, the automobile market puts one more stone in the way.

As if the decrease in sales over these years of crisis were not enough, this VAT increase to 21% will increase on average by more than € 600 when buying a new vehicle.

Surely today there are people who need to change their vehicle for reasons of consumption, kilometers or wear, but the picture that is presented is not very promising. The cost of living, job stability, the price of fuel are factors that determine the possibility of making a change of vehicle.

For this reason, the increase in car registrations in the name of companies or freelancers and its corresponding tax relief benefit will be notable, as well as the increase in the used car sector.

Los coches de ocasión no tienen IVA

VAT on a used car

This sector, that of used cars , will surely be the great winner for this measure.

The VAT tax is only made on one occasion and it is specifically when the car is purchased for the first time, that is, new and fresh from the factory. Once the tax has been settled, the only rate that must be made when selling a second-hand vehicle is the property transfer tax, which is 4% .

For this reason, “zero kilometer” vehicles are so attractive to the consumer because VAT and registration tax that the dealer has already made are saved .

In short: if you are a used car salesman ... congratulations! It has taken advantage in this sector of carom; But if you are a buyer, search quickly since the market for used vehicles is very wide but remember the more demand, the more the price of products on the market will rise .