The sale of a vehicle does not always mean the end of the former owner’s tax obligations. In fact, there is a crucial step that, if forgotten, may imply continue to pay the Single Circulation Tax (IUC), even when the car is no longer in its possession. The Tax Authority (AT) has again clarified the issue, alerting taxpayers to a legal detail that can go unnoticed.
According to the AT, the IUC is the responsibility of those who are owned by the automotive record. Even if the vehicle has already been sold, if the name of the former owner is still in the official registration, the payment obligation remains.
When is the property transferred?
According to information published on the AT social networks, the change of property is only official after its realization with the competent entities.
For motor vehicles and motorcycles, the transfer is only effective after registration with the Institute of Registry and Notary (IRN). In the case of vessels, the competence is of the National Maritime Authority; For aircraft, it is up to the National Institute of Civil Aviation (INAC).
There is also the possibility of cancellation of enrollment, which implies that the vehicle is no longer active in the system and, as such, exempt from tax payment.
When should IUC be paid?
Payment of the IUC must be made annually on the anniversary month of the vehicle’s registration. The exception applies to recreational and aircraft vessels, whose tax obligations always win in January.
According to the Government Portal, in the first year, the payment should occur up to 30 days after registration with the registration.
When the vehicle is bought at a dealer, this charge is often treated at the time of sale. In all other cases, the burden falls on the owner registered in the month corresponding to the registration.
What happens if the registration is not updated?
If the transfer of property has not been officially carried out, the seller remains responsible for payment of the tax, even if the car is already in the hands of another driver.
The situation may become even more problematic if vehicle-associated violations occur from fines to debt taxes.
For this reason, AO reinforces the importance of completing the registration process within the legal term. The new owner must submit the order within 60 days of purchase, but the seller is also interested in ensuring that the change was made correctly.
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How is the amount to pay?
According to Deco Proteste, the amount payable on the IUC depends on several factors, including the year of enrollment, the displacement of the vehicle, the type of fuel and the CO2 emissions.
Calculation differs for cars registered before or after 2007, and diesel vehicles also pay an additional depending on the displacement.
To determine the exact value, it is necessary to verify in the car documents if the emission measurement was made according to the NEDC Protocol (prior to 2018) or WLTP (in force since then), add the cylinder and CO2 values and apply a specific coefficient depending on the year of purchase. If the car goes to diesel, it is still necessary to add the respective additional value.
Practical examples
- Gasoline, 2016, 898 CC, 86 G/KM CO2 (NEDC):
Valor: 111,46 €
Calculation: (31.77 € + 65.15 €) × 1.15 - gasóleo, 2015, 1461 cc, 119 G/KM CO2 (WLTP):
Valor: 158,29 €
Calculation: (63.74 € + 65.15 €) × 1.15 + 10.07
How to avoid problems?
To avoid continuing to pay taxes for vehicles already sold, it is best to make sure that the new owner has completed the transfer of registration. You can also consult the fiscal situation of the car on the Finance Portal.
The recommendation of is clear: only after updated registration or cancellation of registration is that it is no longer required to pay the IUC. Otherwise, the tax authorities will continue to look at himself as the legal guardian, and to charge it in accordance.
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