Index
The taxation of a second-hand vehicle sale: what makes it different
Registration in the IAE and legal form
VAT on the sale of used cars: REBU vs general scheme
Obligatory periodic declarations
Withholdings and obligations in purchases from private individuals
Deductible expenses specific to the sector
Corporate Tax: how profits are taxed
VeriFactu and electronic invoicing: what changes in 2026-2027
Most frequent tax errors in dealerships
Quarterly and annual tax checklist
Frequently asked questions
The taxation of a second-hand vehicle sale: what makes it different
A used car dealership does not have the same tax structure as a shop or a service company. The combination of purchases from private individuals (without VAT) and purchases from professionals (with VAT), the possibility of applying the REBU, the withholding obligations and the treatment of vehicles as stock (not as fixed assets) generate a specific tax framework that requires knowledge of the sector.
The three main pillars of the taxation of a second-hand vehicle sale are VAT (with the decision of REBU or general scheme in each transaction), Corporate Tax or Personal Income Tax (IRPF) depending on the legal form, and periodic formal obligations to the Tax Agency. Understanding how these three pillars interact is the foundation for running the business's tax affairs without errors.
See also the accounting obligations and tax forms of a dealership.
Registration in the IAE and legal form
The IAE. Every second-hand car sale business must be registered in the Economic Activities Tax (IAE) before starting the activity. The corresponding heading is 615.5 (retail trade of second-hand motor vehicles). Businesses with an annual turnover of less than 1 million euros are exempt from paying the IAE fee, although they must appear in the census of activities. Above that threshold, the fee varies depending on the municipality and the surface area of the premises.
Legal form and its tax implications. The legal form determines how business profits are taxed.
The Limited Liability Company (SL) is the most common form for high-volume sales. It is subject to Corporate Tax at the general rate of 25% on profits. For newly created companies, the first two financial years with a positive tax base are taxed at 15%. Partners are additionally taxed when they distribute profits in the form of dividends.
The sole trader (autónomo) is taxed under Personal Income Tax (IRPF) in their personal tax return. The effective rate depends on the taxpayer's total net tax base and can be higher or lower than the Corporate Tax rate depending on the level of profit. There is no legal separation between personal assets and business assets.
The choice of legal form has significant tax implications and must be analysed with a tax advisor considering the projected volume, profit distribution and exposure to risk. To understand the process of incorporation and registration from the beginning, you can review the guide on how to register as a car dealership.
VAT on the sale of used cars: REBU vs general scheme
This is the most recurring tax decision and the one that generates the most errors in the sector. In every purchase and sale transaction, it must be determined whether the REBU (Special Scheme for Used Goods) or the general VAT scheme applies.
When the REBU applies. The REBU applies when the vehicle was acquired without the right to deduct VAT: purchases from individuals, purchases from companies that did not deduct VAT (because it was not deductible for them), trade-ins from another dealership on REBU, and some purchases at auction depending on how the organiser invoices.
Under the REBU, VAT is calculated only on the profit margin (sale price minus purchase price), not on the total sale price. The invoice does not itemise the VAT. The result is a significantly lower tax burden on VAT, especially in low-margin transactions.
When the general scheme applies. The general scheme applies when the vehicle was acquired with deductible VAT: purchases from companies that invoiced with VAT at 21%, imports where VAT was settled at customs, and certain purchases on B2B platforms that invoice with VAT.
Under the general scheme, the dealership charges 21% VAT on the total sale price and can deduct the input VAT paid on the purchase.
The most frequent error. Mixing the two schemes without the correct record-keeping, or applying REBU to transactions that should go under the general scheme (because the purchase carried deductible VAT). The Tax Agency cross-references this data in audits. For full details on how the REBU works, formal requirements and special cases, you can review the complete guide to the REBU for second-hand car sales.
Obligatory periodic declarations
These are the declarations that a second-hand vehicle sale business must submit to the Tax Agency on a periodic basis:
Quarterly:
Form 303 (quarterly VAT return) is the most frequent declaration. It consolidates the transactions for the quarter: output VAT on sales, deductible input VAT and, where applicable, the tax base of REBU transactions for the calculation of VAT on margin. It is submitted in April, July, October and January for the previous quarters.
Form 111 if the dealership has workers or pays income subject to withholding (agency fees, professional services). It covers the withholdings made and their payment to the Tax Agency.
Form 115 if rent is paid for premises. It covers the 19% withholding on the rent paid.
Annual:
Form 390 is the annual VAT summary. It consolidates all quarterly declarations for the year.
Form 190 is the annual summary of withholdings on work income and professional activities (complement to Form 111).
Form 200 (Corporate Tax) for SLs. It is submitted between July and October of the year following the tax year.
Form 347 (transactions with third parties) if transactions with the same supplier or customer have exceeded 3,005.06 euros during the year. It is submitted in February of the following year.
Form 190 also covers withholdings on the purchase of cars from private individuals when applicable (see next section).
Withholdings and obligations in purchases from private individuals
This is one of the aspects that generates the most doubts and is most frequently mismanaged.
When a company (SL) buys a vehicle from a private individual for an amount exceeding 1,000 euros, technically there may be an obligation to apply withholding if the individual's capital gain exceeds certain thresholds. In practice, most dealerships manage this through the informative declaration of Form 187, which requires notifying the Tax Agency of purchases of goods from private individuals when the amount exceeds 300 euros.
The correct management of these transactions requires keeping the purchase contract signed by the private individual, proof of the price paid and the seller's tax details (ID, name, address). Without that documentation, an audit may question the deductibility of those amounts as a stock acquisition cost.
For details on how to correctly declare purchases of vehicles from private individuals and what the withholding obligations are, you can consult the guide on how to declare the purchase of used vehicles from private individuals.
Deductible expenses specific to the sector
Deductible expenses reduce the tax base of Corporate Tax (or Personal Income Tax for sole traders) and deductible input VAT reduces the amount payable in Form 303. In a second-hand vehicle sale, the most relevant deductible items are:
Stock acquisition cost. The price paid for each vehicle is the main cost of the business. Its deductibility requires documentation: signed purchase contract, invoice if the seller is a professional, or proof of payment if they are an individual.
Reconditioning expenses. Workshop invoices for repairs or servicing prior to sale are deductible. The invoice should identify the vehicle (number plate or VIN) to link it clearly to a stock unit.
Advertising and portals. Subscriptions to Coches.net, AutoScout24, Wallapop and other listing portals, as well as photography or content production costs for social media, are deductible as advertising expenses.
Agency fees and transfers. Agency fees for processing ownership changes are deductible. Also DGT or CARFAX reports acquired to evaluate vehicles.
Rent of the premises, utilities, insurance and general expenses. With the corresponding documentation and as long as they are linked to the activity.
Management software. The subscription to a management platform like Dealcar is a deductible expense as business operation software.
For the full list of deductible expenses with their specific tax treatment, you can review the guide on deductible expenses in a second-hand dealership.
Corporate Tax: how profits are taxed
For an SL, Corporate Tax taxes the accounting profit of the financial year (income minus deductible expenses) at the general rate of 25%.
The Corporate Tax base is calculated from the accounting result, adjusting the differences between accounting and tax criteria (depreciation, provisions, deferrals). In practice, for a medium-sized dealership without complex transactions, the tax and accounting results are very similar.
Specific points of the sector in Corporate Tax:
Vehicles in stock are inventories, not fixed assets. They are not depreciated: their cost is charged as an expense when they are sold (cost of sales). This is different from vehicles for the business's own use (a company van, for example), which are fixed assets and are depreciated according to the Tax Agency's tables.
Corporate Tax is settled through quarterly instalment payments (Forms 202, in April, October and December) on account of the final declaration (Form 200, between July and October of the following year). Instalment payments can be calculated on the previous year's tax liability or on the accumulated profit of the current financial year.
To understand how to pay tax correctly according to the chosen legal form and the particularities of the sector, you can review the guide on how to pay tax as a car dealership.
VeriFactu and electronic invoicing: what changes in 2026-2027
The mandatory implementation of the VeriFactu system has been postponed: SLs have until 1 January 2027 and sole traders until 1 July 2027. VeriFactu requires invoicing software to generate chained invoicing records with a verification code (hash) and a QR on each invoice, ensuring the documents cannot be altered.
For a second-hand vehicle sale, the main impact is that invoices generated in Excel or Word will no longer be valid. Invoicing software must be adapted to VeriFactu's technical requirements, including the correct treatment of REBU invoices.
For full details on how VeriFactu works, the exact dates and what you need to do before the mandatory deadline, you can review the guide on electronic invoicing and VeriFactu for dealerships.
Most frequent tax errors in dealerships
Applying REBU to incorrect transactions. If you buy a car from a company that invoices you with VAT, that transaction goes under the general scheme. Applying REBU in that case is an error that the Tax Agency can detect by cross-referencing data between the buyer's and seller's Form 303.
Not keeping documentation for purchases from private individuals. The signed purchase contract and proof of payment are essential to prove the stock acquisition cost. Without them, the Tax Agency can challenge those amounts as a cost.
Issuing incorrect invoices or missing mandatory details. A REBU invoice that itemises VAT is incorrect. An invoice that does not include the buyer's NIF, the vehicle description or the sequential number has formal defects that can cause problems.
Not submitting Form 347 when applicable. Transactions exceeding 3,005 euros with the same supplier or customer must be declared. It is common to forget this form when multiple purchases are made from the same person or company throughout the year.
Confusing inventory with fixed assets. Cars in stock are not depreciated. Treating them as fixed assets generates errors in the balance sheet and in the Corporate Tax base.
For specific REBU errors and how to avoid them, you can consult the article on the REBU errors that cost a dealership the most.
Quarterly and annual tax checklist
Every quarter:
Review all purchases and sales of the quarter, classifying each transaction as REBU or general scheme. Verify that all proofs of purchase from private individuals are signed and filed. Calculate the VAT on margin for REBU transactions and the output and input VAT for general scheme transactions. Submit Form 303 before the deadline (20 April, 20 July, 20 October, 30 January). Submit Forms 111 and 115 if they apply.
Every year:
In February: submit Form 347 if applicable. In June-July: prepare Form 390 and Form 190. In July-October: submit Form 200 (Corporate Tax) for the previous financial year. In April, October and December: submit Corporate Tax instalment payments (Form 202). In December: tax review of the current financial year before closing to identify optimisation opportunities.
More than 750 dealerships already use Dealcar to manage their daily operations
Dealcar automatically generates purchase and sale invoices with the correct tax scheme (general VAT or REBU) according to the origin of each vehicle, keeps the transaction record organized for the preparation of quarterly forms and is adapted to the technical requirements of VeriFactu. With invoicing integrated into the same system where you manage stock and documentation, the administrative burden of complying with the Tax Agency is significantly reduced.
If you want to see how it works, visit dealcar.io/verifactu-para-concesionarios or you can schedule a free demo at dealcar.io.
Frequently asked questions
Can I apply the REBU if I buy the car at an auction?
It depends on how the auction invoices. If the auction issues an invoice with deductible VAT, the transaction goes under the general scheme. If it invoices without itemised VAT or as an exempt transaction, REBU can apply. The invoice for each transaction must be reviewed.
Is it mandatory to submit Form 347 if I only sell to private individuals?
Not if all sales are to private individuals. Form 347 only applies to transactions exceeding 3,005 euros with companies or professionals. Sales to private individuals are not included in Form 347.
Are stock cars depreciated?
No. Vehicles in stock are inventory: their cost is charged as an expense when they are sold. Only fixed assets of the business (own premises, machinery, IT equipment, vehicles for own use) are depreciated.
Can I mix REBU and general scheme transactions on the same invoice?
No. Each invoice must correspond to a single scheme. If you sell two cars in the same transaction and one goes under REBU and the other under the general scheme, you must issue two separate invoices.
What happens if I do not submit Form 303 on time?
The Tax Agency applies a surcharge for late submission: 1% for each month of delay up to 12 months, and 15% plus late-payment interest from month 13. If the late submission is for a quarter with a refund result, there is no surcharge but there may be a loss of the right to the refund if more than four years pass.
Index
The taxation of a second-hand vehicle sale: what makes it different
Registration in the IAE and legal form
VAT on the sale of used cars: REBU vs general scheme
Obligatory periodic declarations
Withholdings and obligations in purchases from private individuals
Deductible expenses specific to the sector
Corporate Tax: how profits are taxed
VeriFactu and electronic invoicing: what changes in 2026-2027
Most frequent tax errors in dealerships
Quarterly and annual tax checklist
Frequently asked questions
The taxation of a second-hand vehicle sale: what makes it different
A used car dealership does not have the same tax structure as a shop or a service company. The combination of purchases from private individuals (without VAT) and purchases from professionals (with VAT), the possibility of applying the REBU, the withholding obligations and the treatment of vehicles as stock (not as fixed assets) generate a specific tax framework that requires knowledge of the sector.
The three main pillars of the taxation of a second-hand vehicle sale are VAT (with the decision of REBU or general scheme in each transaction), Corporate Tax or Personal Income Tax (IRPF) depending on the legal form, and periodic formal obligations to the Tax Agency. Understanding how these three pillars interact is the foundation for running the business's tax affairs without errors.
See also the accounting obligations and tax forms of a dealership.
Registration in the IAE and legal form
The IAE. Every second-hand car sale business must be registered in the Economic Activities Tax (IAE) before starting the activity. The corresponding heading is 615.5 (retail trade of second-hand motor vehicles). Businesses with an annual turnover of less than 1 million euros are exempt from paying the IAE fee, although they must appear in the census of activities. Above that threshold, the fee varies depending on the municipality and the surface area of the premises.
Legal form and its tax implications. The legal form determines how business profits are taxed.
The Limited Liability Company (SL) is the most common form for high-volume sales. It is subject to Corporate Tax at the general rate of 25% on profits. For newly created companies, the first two financial years with a positive tax base are taxed at 15%. Partners are additionally taxed when they distribute profits in the form of dividends.
The sole trader (autónomo) is taxed under Personal Income Tax (IRPF) in their personal tax return. The effective rate depends on the taxpayer's total net tax base and can be higher or lower than the Corporate Tax rate depending on the level of profit. There is no legal separation between personal assets and business assets.
The choice of legal form has significant tax implications and must be analysed with a tax advisor considering the projected volume, profit distribution and exposure to risk. To understand the process of incorporation and registration from the beginning, you can review the guide on how to register as a car dealership.
VAT on the sale of used cars: REBU vs general scheme
This is the most recurring tax decision and the one that generates the most errors in the sector. In every purchase and sale transaction, it must be determined whether the REBU (Special Scheme for Used Goods) or the general VAT scheme applies.
When the REBU applies. The REBU applies when the vehicle was acquired without the right to deduct VAT: purchases from individuals, purchases from companies that did not deduct VAT (because it was not deductible for them), trade-ins from another dealership on REBU, and some purchases at auction depending on how the organiser invoices.
Under the REBU, VAT is calculated only on the profit margin (sale price minus purchase price), not on the total sale price. The invoice does not itemise the VAT. The result is a significantly lower tax burden on VAT, especially in low-margin transactions.
When the general scheme applies. The general scheme applies when the vehicle was acquired with deductible VAT: purchases from companies that invoiced with VAT at 21%, imports where VAT was settled at customs, and certain purchases on B2B platforms that invoice with VAT.
Under the general scheme, the dealership charges 21% VAT on the total sale price and can deduct the input VAT paid on the purchase.
The most frequent error. Mixing the two schemes without the correct record-keeping, or applying REBU to transactions that should go under the general scheme (because the purchase carried deductible VAT). The Tax Agency cross-references this data in audits. For full details on how the REBU works, formal requirements and special cases, you can review the complete guide to the REBU for second-hand car sales.
Obligatory periodic declarations
These are the declarations that a second-hand vehicle sale business must submit to the Tax Agency on a periodic basis:
Quarterly:
Form 303 (quarterly VAT return) is the most frequent declaration. It consolidates the transactions for the quarter: output VAT on sales, deductible input VAT and, where applicable, the tax base of REBU transactions for the calculation of VAT on margin. It is submitted in April, July, October and January for the previous quarters.
Form 111 if the dealership has workers or pays income subject to withholding (agency fees, professional services). It covers the withholdings made and their payment to the Tax Agency.
Form 115 if rent is paid for premises. It covers the 19% withholding on the rent paid.
Annual:
Form 390 is the annual VAT summary. It consolidates all quarterly declarations for the year.
Form 190 is the annual summary of withholdings on work income and professional activities (complement to Form 111).
Form 200 (Corporate Tax) for SLs. It is submitted between July and October of the year following the tax year.
Form 347 (transactions with third parties) if transactions with the same supplier or customer have exceeded 3,005.06 euros during the year. It is submitted in February of the following year.
Form 190 also covers withholdings on the purchase of cars from private individuals when applicable (see next section).
Withholdings and obligations in purchases from private individuals
This is one of the aspects that generates the most doubts and is most frequently mismanaged.
When a company (SL) buys a vehicle from a private individual for an amount exceeding 1,000 euros, technically there may be an obligation to apply withholding if the individual's capital gain exceeds certain thresholds. In practice, most dealerships manage this through the informative declaration of Form 187, which requires notifying the Tax Agency of purchases of goods from private individuals when the amount exceeds 300 euros.
The correct management of these transactions requires keeping the purchase contract signed by the private individual, proof of the price paid and the seller's tax details (ID, name, address). Without that documentation, an audit may question the deductibility of those amounts as a stock acquisition cost.
For details on how to correctly declare purchases of vehicles from private individuals and what the withholding obligations are, you can consult the guide on how to declare the purchase of used vehicles from private individuals.
Deductible expenses specific to the sector
Deductible expenses reduce the tax base of Corporate Tax (or Personal Income Tax for sole traders) and deductible input VAT reduces the amount payable in Form 303. In a second-hand vehicle sale, the most relevant deductible items are:
Stock acquisition cost. The price paid for each vehicle is the main cost of the business. Its deductibility requires documentation: signed purchase contract, invoice if the seller is a professional, or proof of payment if they are an individual.
Reconditioning expenses. Workshop invoices for repairs or servicing prior to sale are deductible. The invoice should identify the vehicle (number plate or VIN) to link it clearly to a stock unit.
Advertising and portals. Subscriptions to Coches.net, AutoScout24, Wallapop and other listing portals, as well as photography or content production costs for social media, are deductible as advertising expenses.
Agency fees and transfers. Agency fees for processing ownership changes are deductible. Also DGT or CARFAX reports acquired to evaluate vehicles.
Rent of the premises, utilities, insurance and general expenses. With the corresponding documentation and as long as they are linked to the activity.
Management software. The subscription to a management platform like Dealcar is a deductible expense as business operation software.
For the full list of deductible expenses with their specific tax treatment, you can review the guide on deductible expenses in a second-hand dealership.
Corporate Tax: how profits are taxed
For an SL, Corporate Tax taxes the accounting profit of the financial year (income minus deductible expenses) at the general rate of 25%.
The Corporate Tax base is calculated from the accounting result, adjusting the differences between accounting and tax criteria (depreciation, provisions, deferrals). In practice, for a medium-sized dealership without complex transactions, the tax and accounting results are very similar.
Specific points of the sector in Corporate Tax:
Vehicles in stock are inventories, not fixed assets. They are not depreciated: their cost is charged as an expense when they are sold (cost of sales). This is different from vehicles for the business's own use (a company van, for example), which are fixed assets and are depreciated according to the Tax Agency's tables.
Corporate Tax is settled through quarterly instalment payments (Forms 202, in April, October and December) on account of the final declaration (Form 200, between July and October of the following year). Instalment payments can be calculated on the previous year's tax liability or on the accumulated profit of the current financial year.
To understand how to pay tax correctly according to the chosen legal form and the particularities of the sector, you can review the guide on how to pay tax as a car dealership.
VeriFactu and electronic invoicing: what changes in 2026-2027
The mandatory implementation of the VeriFactu system has been postponed: SLs have until 1 January 2027 and sole traders until 1 July 2027. VeriFactu requires invoicing software to generate chained invoicing records with a verification code (hash) and a QR on each invoice, ensuring the documents cannot be altered.
For a second-hand vehicle sale, the main impact is that invoices generated in Excel or Word will no longer be valid. Invoicing software must be adapted to VeriFactu's technical requirements, including the correct treatment of REBU invoices.
For full details on how VeriFactu works, the exact dates and what you need to do before the mandatory deadline, you can review the guide on electronic invoicing and VeriFactu for dealerships.
Most frequent tax errors in dealerships
Applying REBU to incorrect transactions. If you buy a car from a company that invoices you with VAT, that transaction goes under the general scheme. Applying REBU in that case is an error that the Tax Agency can detect by cross-referencing data between the buyer's and seller's Form 303.
Not keeping documentation for purchases from private individuals. The signed purchase contract and proof of payment are essential to prove the stock acquisition cost. Without them, the Tax Agency can challenge those amounts as a cost.
Issuing incorrect invoices or missing mandatory details. A REBU invoice that itemises VAT is incorrect. An invoice that does not include the buyer's NIF, the vehicle description or the sequential number has formal defects that can cause problems.
Not submitting Form 347 when applicable. Transactions exceeding 3,005 euros with the same supplier or customer must be declared. It is common to forget this form when multiple purchases are made from the same person or company throughout the year.
Confusing inventory with fixed assets. Cars in stock are not depreciated. Treating them as fixed assets generates errors in the balance sheet and in the Corporate Tax base.
For specific REBU errors and how to avoid them, you can consult the article on the REBU errors that cost a dealership the most.
Quarterly and annual tax checklist
Every quarter:
Review all purchases and sales of the quarter, classifying each transaction as REBU or general scheme. Verify that all proofs of purchase from private individuals are signed and filed. Calculate the VAT on margin for REBU transactions and the output and input VAT for general scheme transactions. Submit Form 303 before the deadline (20 April, 20 July, 20 October, 30 January). Submit Forms 111 and 115 if they apply.
Every year:
In February: submit Form 347 if applicable. In June-July: prepare Form 390 and Form 190. In July-October: submit Form 200 (Corporate Tax) for the previous financial year. In April, October and December: submit Corporate Tax instalment payments (Form 202). In December: tax review of the current financial year before closing to identify optimisation opportunities.
More than 750 dealerships already use Dealcar to manage their daily operations
Dealcar automatically generates purchase and sale invoices with the correct tax scheme (general VAT or REBU) according to the origin of each vehicle, keeps the transaction record organized for the preparation of quarterly forms and is adapted to the technical requirements of VeriFactu. With invoicing integrated into the same system where you manage stock and documentation, the administrative burden of complying with the Tax Agency is significantly reduced.
If you want to see how it works, visit dealcar.io/verifactu-para-concesionarios or you can schedule a free demo at dealcar.io.
Frequently asked questions
Can I apply the REBU if I buy the car at an auction?
It depends on how the auction invoices. If the auction issues an invoice with deductible VAT, the transaction goes under the general scheme. If it invoices without itemised VAT or as an exempt transaction, REBU can apply. The invoice for each transaction must be reviewed.
Is it mandatory to submit Form 347 if I only sell to private individuals?
Not if all sales are to private individuals. Form 347 only applies to transactions exceeding 3,005 euros with companies or professionals. Sales to private individuals are not included in Form 347.
Are stock cars depreciated?
No. Vehicles in stock are inventory: their cost is charged as an expense when they are sold. Only fixed assets of the business (own premises, machinery, IT equipment, vehicles for own use) are depreciated.
Can I mix REBU and general scheme transactions on the same invoice?
No. Each invoice must correspond to a single scheme. If you sell two cars in the same transaction and one goes under REBU and the other under the general scheme, you must issue two separate invoices.
What happens if I do not submit Form 303 on time?
The Tax Agency applies a surcharge for late submission: 1% for each month of delay up to 12 months, and 15% plus late-payment interest from month 13. If the late submission is for a quarter with a refund result, there is no surcharge but there may be a loss of the right to the refund if more than four years pass.
