Second-hand car dealerships in Spain, especially medium-sized ones (with around 40 vehicles in stock, 2 employees and roughly €1 million in turnover), face a series of tax obligations every year. With the arrival of 2025, it is crucial to know the current regulations to avoid penalties, optimise taxes and improve the business’s profitability.
This practical guide summarises the essential tax aspects: VAT, common deductions, the types of taxes affecting your dealership and useful tips for keeping your accounts up to date.
Basic tax obligations for dealerships
1. Registration for IAE (Economic Activities Tax)
Every dealership must be registered under the corresponding IAE category. The activity is usually registered under code 615.5 (trade in used vehicles). Dealerships with turnover below €1 million are exempt from paying this tax, although they must still declare it.
2. Mandatory accounting records
Keeping up to date books of issued and received invoices, the fixed assets register and the intra-Community transactions register is essential, especially if purchases are made outside Spain or within the EU.
3. Periodic returns
VAT (Form 303): Quarterly.
Annual VAT summary (Form 390).
Income tax withholdings (Forms 111 and 190) if you have employees.
Corporate Tax (Form 200) for limited companies.
Transactions with third parties (Form 347) if you exceed €3,005.06 per year with the same supplier or customer.
VAT for second-hand car dealerships
General regime or special regime for used goods (REBU)?
One of the most delicate aspects is knowing when to apply the REBU special scheme, which allows you to pay tax only on the profit margin and not on the total transaction value.
Applicable when:
The vehicle has been purchased from a private individual or a business that did not deduct the VAT.
Not applicable when:
The vehicle is bought from a company that did deduct the VAT. In that case, the general VAT regime (21%) applies.
Practical example:
A dealership buys a car from a private individual for €5,000 and sells it for €6,500:
With REBU: VAT is calculated only on the margin (€1,500), that is, 21% of €1,500 = €315.
With the general regime: 21% is calculated on the total (€6,500), that is, €1,365, but the input VAT can be deducted if there is any.
Practical tips:
Always document the origin of the vehicle.
Clearly distinguish in your accounts which vehicles fall under REBU and which are under general VAT.
Use accounting software adapted to dealerships.
Common tax deductions
1. Deductible expenses
Purchase of vehicles for stock (depending on the type of supplier and tax regime).
Advertising and marketing.
Repairs and inspections before sale.
Wages and Social Security.
Premises rent, utilities and general business expenses.
2. Depreciation
You can depreciate the value of premises, tools and IT equipment necessary for the dealership’s activity.
Quarterly and annual tax checklist
Quarterly:
Review sales and purchases for the quarter.
Classify REBU operations vs general regime.
Prepare and submit Form 303.
Review deductible expenses and supporting documents.
Consult a tax adviser if there were any unusual transactions.
Annual:
Submit Forms 390, 190, 200 and 347 as applicable.
Review depreciation and adjust the accounts.
Assess changes to the tax regime if applicable.
Plan investments or purchases before year-end tax closing.
Common tax mistakes in dealerships
Not correctly distinguishing REBU transactions.
Issuing incorrect or incomplete invoices.
Forgetting to submit forms such as 347.
Not keeping vehicle purchase receipts.
Not planning depreciation or year-end tax closing.
Avoiding these mistakes can make the difference between healthy accounts and an inspection with penalties.
Recommended tax management software
Some useful tools for dealerships that want to keep everything in order:
Contasol: free, with a REBU VAT module.
Autosoft: specialised for dealerships, integrates stock management and invoicing.
Sage 50 / A3ERP: for dealerships with higher volume.
Key tips to optimise your tax position in 2025
Carry out quarterly tax reviews with your adviser to correct deviations in time.
Use digital tools to automate invoicing and separate REBU transactions from general ones.
Have a clear purchasing policy: knowing the supplier’s tax regime avoids VAT errors.
Plan the annual tax closing in advance to optimise deductions and depreciation.
Don’t wait for the tax authority to review your accounts. Anticipate possible errors.
Frequently asked questions (FAQs)
Can I apply REBU if I buy the car at auction?
It depends on whether the supplier invoices you with deductible VAT. If there is no deductible VAT, you can apply REBU.
Is it compulsory to submit Form 347 if I sell to private individuals?
No, Form 347 only applies if you have transactions exceeding €3,005 with other professionals or businesses.
What happens if I mix REBU and standard vehicles on the same invoice?
That is not allowed. You must issue separate invoices.
What do I do if I bought a vehicle from a foreign company?
In that case, reverse charge may apply (Form 349) and you must check whether you can apply REBU or the general regime.
Conclusion
Complying with tax obligations not only avoids problems with the tax authorities, but also improves the dealership’s financial health. With good organisation and advice, it is possible to optimise the business’s tax position even in a changing environment like 2025.
For medium-sized second-hand dealerships, such as those operating with 40 cars and 2 workers, this guide is a solid basis for reviewing and adjusting their tax management proactively and profitably. It is not just about compliance, but about taking advantage of all the available tools to grow your business.
Second-hand car dealerships in Spain, especially medium-sized ones (with around 40 vehicles in stock, 2 employees and roughly €1 million in turnover), face a series of tax obligations every year. With the arrival of 2025, it is crucial to know the current regulations to avoid penalties, optimise taxes and improve the business’s profitability.
This practical guide summarises the essential tax aspects: VAT, common deductions, the types of taxes affecting your dealership and useful tips for keeping your accounts up to date.
Basic tax obligations for dealerships
1. Registration for IAE (Economic Activities Tax)
Every dealership must be registered under the corresponding IAE category. The activity is usually registered under code 615.5 (trade in used vehicles). Dealerships with turnover below €1 million are exempt from paying this tax, although they must still declare it.
2. Mandatory accounting records
Keeping up to date books of issued and received invoices, the fixed assets register and the intra-Community transactions register is essential, especially if purchases are made outside Spain or within the EU.
3. Periodic returns
VAT (Form 303): Quarterly.
Annual VAT summary (Form 390).
Income tax withholdings (Forms 111 and 190) if you have employees.
Corporate Tax (Form 200) for limited companies.
Transactions with third parties (Form 347) if you exceed €3,005.06 per year with the same supplier or customer.
VAT for second-hand car dealerships
General regime or special regime for used goods (REBU)?
One of the most delicate aspects is knowing when to apply the REBU special scheme, which allows you to pay tax only on the profit margin and not on the total transaction value.
Applicable when:
The vehicle has been purchased from a private individual or a business that did not deduct the VAT.
Not applicable when:
The vehicle is bought from a company that did deduct the VAT. In that case, the general VAT regime (21%) applies.
Practical example:
A dealership buys a car from a private individual for €5,000 and sells it for €6,500:
With REBU: VAT is calculated only on the margin (€1,500), that is, 21% of €1,500 = €315.
With the general regime: 21% is calculated on the total (€6,500), that is, €1,365, but the input VAT can be deducted if there is any.
Practical tips:
Always document the origin of the vehicle.
Clearly distinguish in your accounts which vehicles fall under REBU and which are under general VAT.
Use accounting software adapted to dealerships.
Common tax deductions
1. Deductible expenses
Purchase of vehicles for stock (depending on the type of supplier and tax regime).
Advertising and marketing.
Repairs and inspections before sale.
Wages and Social Security.
Premises rent, utilities and general business expenses.
2. Depreciation
You can depreciate the value of premises, tools and IT equipment necessary for the dealership’s activity.
Quarterly and annual tax checklist
Quarterly:
Review sales and purchases for the quarter.
Classify REBU operations vs general regime.
Prepare and submit Form 303.
Review deductible expenses and supporting documents.
Consult a tax adviser if there were any unusual transactions.
Annual:
Submit Forms 390, 190, 200 and 347 as applicable.
Review depreciation and adjust the accounts.
Assess changes to the tax regime if applicable.
Plan investments or purchases before year-end tax closing.
Common tax mistakes in dealerships
Not correctly distinguishing REBU transactions.
Issuing incorrect or incomplete invoices.
Forgetting to submit forms such as 347.
Not keeping vehicle purchase receipts.
Not planning depreciation or year-end tax closing.
Avoiding these mistakes can make the difference between healthy accounts and an inspection with penalties.
Recommended tax management software
Some useful tools for dealerships that want to keep everything in order:
Contasol: free, with a REBU VAT module.
Autosoft: specialised for dealerships, integrates stock management and invoicing.
Sage 50 / A3ERP: for dealerships with higher volume.
Key tips to optimise your tax position in 2025
Carry out quarterly tax reviews with your adviser to correct deviations in time.
Use digital tools to automate invoicing and separate REBU transactions from general ones.
Have a clear purchasing policy: knowing the supplier’s tax regime avoids VAT errors.
Plan the annual tax closing in advance to optimise deductions and depreciation.
Don’t wait for the tax authority to review your accounts. Anticipate possible errors.
Frequently asked questions (FAQs)
Can I apply REBU if I buy the car at auction?
It depends on whether the supplier invoices you with deductible VAT. If there is no deductible VAT, you can apply REBU.
Is it compulsory to submit Form 347 if I sell to private individuals?
No, Form 347 only applies if you have transactions exceeding €3,005 with other professionals or businesses.
What happens if I mix REBU and standard vehicles on the same invoice?
That is not allowed. You must issue separate invoices.
What do I do if I bought a vehicle from a foreign company?
In that case, reverse charge may apply (Form 349) and you must check whether you can apply REBU or the general regime.
Conclusion
Complying with tax obligations not only avoids problems with the tax authorities, but also improves the dealership’s financial health. With good organisation and advice, it is possible to optimise the business’s tax position even in a changing environment like 2025.
For medium-sized second-hand dealerships, such as those operating with 40 cars and 2 workers, this guide is a solid basis for reviewing and adjusting their tax management proactively and profitably. It is not just about compliance, but about taking advantage of all the available tools to grow your business.
