The purchase of a vehicle is an important decision that requires a significant investment. However, for people with disabilities, this decision can be even more challenging due to the specific needs and adaptations required. Fortunately, there are some tax advantages available to help these people cope with this expense. In this article, we are going to explore how VAT is reduced to 4% when buying used cars for people with disabilities.
Introduction to reduced VAT on used cars
Value Added Tax (VAT) is a tax that applies to goods and services in Spain. Normally, VAT on the purchase of a car is the 21%. However, people with disabilities can benefit from a significant reduction in VAT to 4% when buying a used car.
This measure aims to make mobility easier and promote social inclusion for people with disabilities.
Requirements to obtain the VAT reduction
To benefit from this VAT reduction, certain requirements must be met:
The person must have an officially recognised disability, which may vary depending on the autonomous community. It is generally measured by the inability to use public transport through a points system. To qualify for this type of aid, 7 points or more are usually required.
The vehicle purchased must be used exclusively by the person with a disability or for their transport.
If the vehicle is driven by another person, it must be used solely for transporting the person with a disability.
It is important to note that these requirements are mandatory and must be proven to the relevant tax authorities.
Documentation needed to obtain the reduction
To apply for the VAT reduction, certain supporting documents must be submitted:
Up-to-date disability certificate issued by the competent authority.
Vehicle documentation (technical data sheet and registration document).
Pro forma invoice or quotation for the vehicle showing the price breakdown excluding taxes.
It is recommended to submit a written statement signed by the beneficiary, explaining their case.
This documentation will be reviewed by the tax authorities before granting the tax reduction.
Obtaining the disability certificate
The disability certificate is an official document that certifies the degree and type of disability that a person has. This certificate is issued by the Centros Base under IMSERSO or by the competent bodies of the Autonomous Communities.
To obtain it, a medical assessment is required to determine the degree of disability.
Application for VAT reduction
Once the disability certificate has been obtained, the VAT reduction must be requested at a tax office. This application must be accompanied by the documentation mentioned above. You can do it online.
Once the documentation has been reviewed and it has been confirmed that all requirements are met, the tax authorities will issue a certificate confirming the right to apply the reduced 4% rate when purchasing the vehicle.
Informing the dealership
With this certificate in hand, it is necessary to inform the dealership that the VAT reduction will be claimed.
The dealership must apply this tax rate on the final invoice and keep a copy of the certificate to justify this application to the tax authorities.
Beneficiaries of the VAT reduction
The VAT reduction benefits not only people with reduced mobility but also:
Pensioners with total permanent incapacity, absolute incapacity or severe disability
People with visual impairments or who are blind and affiliated with ONCE
Those who have obtained disability certification through their Autonomous Community.
The conditions for applying for the VAT reduction may vary depending on the Autonomous Community. It is true that the tax authorities do not explain it very clearly, which is why it is such an unknown aid. Generally, the percentage of disability is not as important as the mobility score, which usually appears at the bottom of the certificate. The tax authorities may require 7 points or more as a condition.
Vehicle owner
In theory, the vehicle owner can be either the person with a disability or another person (an immediate family member), as long as the vehicle is used to transport the person with a disability. However, our recommendation to avoid penalties is that the owner should be the beneficiary of the aid.
Driver of the vehicle
The driver of the vehicle does not have to be the person with a disability. It can be anyone else, as long as the car is used to transport the person with a disability.
Types of vehicles eligible for reduced VAT
The vehicles that can benefit from this VAT reduction are those intended for transporting people with reduced mobility, whether adapted for wheelchairs or unmodified, as long as they are regularly used for this purpose.
As a curiosity, the tax authorities do not set a price limit when choosing the vehicle.
Wheelchair-adapted cars
Wheelchair-adapted vehicles are those that have been specifically modified to make access and safe accommodation for a wheelchair easier.
These vehicles usually have ramps, lifts or special systems that allow the wheelchair to be secured to the floor of the car.
Cars with modifications
Some cars may require certain modifications in order to be driven by people with certain disabilities.
These modifications may include:
Special pedal systems
Adaptive steering wheels
Electronic devices that facilitate driving
Cars without modifications
Not all cars need modifications. Some models already come from the factory with features such as:
Swivelling seats
Automatic sliding doors
These make access to the inside of the car easier for people with reduced mobility.
After Purchase: Proper Use
It is essential to remember that the car purchased under these conditions must be used exclusively for transporting the person with a disability.
Any improper use can result in penalties.
What happens if we want to sell a car purchased with reduced VAT?
If you have bought a used car with this significant aid and want to sell it for any reason, there are two possibilities:
If 4 years have not passed since the vehicle was purchased, the tax authorities will require payment of the VAT that was not paid at the time of purchase.
If 4 years or more have passed since the vehicle was purchased, the sale is completely unrestricted, and the tax authorities cannot claim anything.
The purchase of a vehicle is an important decision that requires a significant investment. However, for people with disabilities, this decision can be even more challenging due to the specific needs and adaptations required. Fortunately, there are some tax advantages available to help these people cope with this expense. In this article, we are going to explore how VAT is reduced to 4% when buying used cars for people with disabilities.
Introduction to reduced VAT on used cars
Value Added Tax (VAT) is a tax that applies to goods and services in Spain. Normally, VAT on the purchase of a car is the 21%. However, people with disabilities can benefit from a significant reduction in VAT to 4% when buying a used car.
This measure aims to make mobility easier and promote social inclusion for people with disabilities.
Requirements to obtain the VAT reduction
To benefit from this VAT reduction, certain requirements must be met:
The person must have an officially recognised disability, which may vary depending on the autonomous community. It is generally measured by the inability to use public transport through a points system. To qualify for this type of aid, 7 points or more are usually required.
The vehicle purchased must be used exclusively by the person with a disability or for their transport.
If the vehicle is driven by another person, it must be used solely for transporting the person with a disability.
It is important to note that these requirements are mandatory and must be proven to the relevant tax authorities.
Documentation needed to obtain the reduction
To apply for the VAT reduction, certain supporting documents must be submitted:
Up-to-date disability certificate issued by the competent authority.
Vehicle documentation (technical data sheet and registration document).
Pro forma invoice or quotation for the vehicle showing the price breakdown excluding taxes.
It is recommended to submit a written statement signed by the beneficiary, explaining their case.
This documentation will be reviewed by the tax authorities before granting the tax reduction.
Obtaining the disability certificate
The disability certificate is an official document that certifies the degree and type of disability that a person has. This certificate is issued by the Centros Base under IMSERSO or by the competent bodies of the Autonomous Communities.
To obtain it, a medical assessment is required to determine the degree of disability.
Application for VAT reduction
Once the disability certificate has been obtained, the VAT reduction must be requested at a tax office. This application must be accompanied by the documentation mentioned above. You can do it online.
Once the documentation has been reviewed and it has been confirmed that all requirements are met, the tax authorities will issue a certificate confirming the right to apply the reduced 4% rate when purchasing the vehicle.
Informing the dealership
With this certificate in hand, it is necessary to inform the dealership that the VAT reduction will be claimed.
The dealership must apply this tax rate on the final invoice and keep a copy of the certificate to justify this application to the tax authorities.
Beneficiaries of the VAT reduction
The VAT reduction benefits not only people with reduced mobility but also:
Pensioners with total permanent incapacity, absolute incapacity or severe disability
People with visual impairments or who are blind and affiliated with ONCE
Those who have obtained disability certification through their Autonomous Community.
The conditions for applying for the VAT reduction may vary depending on the Autonomous Community. It is true that the tax authorities do not explain it very clearly, which is why it is such an unknown aid. Generally, the percentage of disability is not as important as the mobility score, which usually appears at the bottom of the certificate. The tax authorities may require 7 points or more as a condition.
Vehicle owner
In theory, the vehicle owner can be either the person with a disability or another person (an immediate family member), as long as the vehicle is used to transport the person with a disability. However, our recommendation to avoid penalties is that the owner should be the beneficiary of the aid.
Driver of the vehicle
The driver of the vehicle does not have to be the person with a disability. It can be anyone else, as long as the car is used to transport the person with a disability.
Types of vehicles eligible for reduced VAT
The vehicles that can benefit from this VAT reduction are those intended for transporting people with reduced mobility, whether adapted for wheelchairs or unmodified, as long as they are regularly used for this purpose.
As a curiosity, the tax authorities do not set a price limit when choosing the vehicle.
Wheelchair-adapted cars
Wheelchair-adapted vehicles are those that have been specifically modified to make access and safe accommodation for a wheelchair easier.
These vehicles usually have ramps, lifts or special systems that allow the wheelchair to be secured to the floor of the car.
Cars with modifications
Some cars may require certain modifications in order to be driven by people with certain disabilities.
These modifications may include:
Special pedal systems
Adaptive steering wheels
Electronic devices that facilitate driving
Cars without modifications
Not all cars need modifications. Some models already come from the factory with features such as:
Swivelling seats
Automatic sliding doors
These make access to the inside of the car easier for people with reduced mobility.
After Purchase: Proper Use
It is essential to remember that the car purchased under these conditions must be used exclusively for transporting the person with a disability.
Any improper use can result in penalties.
What happens if we want to sell a car purchased with reduced VAT?
If you have bought a used car with this significant aid and want to sell it for any reason, there are two possibilities:
If 4 years have not passed since the vehicle was purchased, the tax authorities will require payment of the VAT that was not paid at the time of purchase.
If 4 years or more have passed since the vehicle was purchased, the sale is completely unrestricted, and the tax authorities cannot claim anything.
