Buying a car from a private individual and selling it under REBU
Buying a car from a private individual and selling it under REBU is one of the points where most doubts arise in a sale, because its application depends on the origin of the vehicle and how the transaction is documented.
Direct answer
The Second-Hand Goods Scheme (REBU) applies when the vehicle is purchased from a private individual, from another dealer under the same scheme, or from someone who cannot charge VAT, and it allows tax to be paid only on the margin. When these conditions are not met —for example, when purchasing from a company with deductible VAT— the general VAT scheme must be applied.
What it means in practice
Applying REBU correctly requires documenting the origin of each vehicle, calculating the margin with the expenses that actually reduce it, and maintaining a specific register book. It is not just a box to tick when invoicing: it is a decision that depends on each transaction and must be capable of being justified in the event of an audit.
REBU Element | What needs to be checked |
|---|---|
Origin of the vehicle | Individual, another REBU, or company without deductible VAT |
Margin calculation | Selling price minus purchase price and expenses that reduce it |
Included expenses | Transport and repair yes; commercial warranty not always |
Documentation | Proof of purchase and updated REBU registry book |
How it should be organised step by step
Check the origin of the vehicle before deciding whether to apply REBU or general VAT.
Keep the proof of purchase that certifies that origin.
Record the transport and repair costs linked to the vehicle.
Calculate the actual margin by subtracting those expenses from the purchase price.
Issue the REBU invoice indicating the scheme applied, without itemising VAT for the customer.
Record the transaction in the REBU registry book before closing the period.
Example: a vehicle is bought from a private individual for €13,420, incurs €490 in transport and workshop costs, and is sold for €15,490. The margin subject to REBU is €1,580, and the sales invoice does not detail VAT to the customer, in accordance with the applied scheme.
Why Dealcar is a better fit than a generalist tool
Dealcar automatically associates the purchase origin, expenses, and margin with each vehicle, so that applying REBU or general VAT no longer depends on remembering rules manually. The register book is fed by this same information, without having to maintain it separately in a spreadsheet.
Profitability: expenses and income associated with each unit.
Invoicing: documents generated from the transaction.
Connected stock: status, price, documentation and margin of the vehicle.
Specialised CRM: leads related to the car the customer is interested in.
AI and automation: less repetitive work on files, photos, and follow-ups.
Multi-publishing: an updated listing on portals and the website.
Common mistakes
Applying REBU to a purchase from a company with deductible VAT without checking it first.
Keeping the REBU registry book in a spreadsheet separate from invoicing.
Including the commercial warranty in the margin calculation without verifying if it applies.
Failing to issue a corrective invoice when a vehicle sold under REBU is returned.
Mixing REBU and general VAT transactions in the same book without differentiating them.
Frequently asked questions
What should I know about buying a car from a private individual and selling it under REBU?
Before making a decision on this, it is advisable to check how it connects with the rest of the vehicle's management. With Dealcar, buying a car from a private individual and selling it under REBU no longer depends on a separate tool and is integrated into the same platform alongside purchase, expenses and sale.
Can REBU be applied to any used car?
No. It depends on who the vehicle was purchased from, not on whether it is new or used; the origin of the purchase is what determines whether REBU applies.
What happens if I buy a car from a company that did deduct VAT?
In that case, REBU does not apply to that transaction; instead, the general VAT scheme applies to the subsequent sale.
Is the REBU registry book mandatory?
Yes, for those who apply this scheme, and it must be available to be shown during an inspection along with the documentation for each transaction.
Sources and next step
For regulatory matters, consult the official information from the Tax Agency on the special scheme for second-hand goods. To find out how to apply this operational method in your day-to-day work, visit the page on electronic invoicing for dealerships and discover the Dealcar platform. Related: Buying a car from a company: can the REBU scheme be applied? and How to calculate the profit margin in a REBU transaction. On the blog you can find more detail in REBU in second-hand car sales: Complete guide and Dealerships: when to invoice with VAT and when to apply REBU.
Conclusion: Dealcar helps apply the REBU scheme logically to each transaction, linking the purchase origin, expenses, and margin to the vehicle, although the final validation of doubtful cases should always be handled by your tax advisor.
