The Special Scheme for Second-hand Goods (REBU) is a tax system applied to the buying and selling of used vehicles in Spain. This scheme helps avoid double VAT taxation and offers advantages for both sellers and buyers of used cars.
In this complete guide to REBU we explain in detail what it is, its advantages, obligations, VAT calculation, and answer the most frequently asked questions about its application in the used-vehicle market.
What is REBU (Special Scheme for Second-hand Goods)?
The Special Scheme for Second-hand Goods (REBU) is a voluntary tax system that applies to supplies of second-hand goods carried out by businesses or self-employed persons acting in their own name.
This scheme is set out in Article 135 of the VAT Act 37/1992 and its aim is to avoid the double taxation that would arise from applying the standard VAT scheme to goods that have already borne that tax.
REBU applies especially to the buying and selling of used vehicles, allowing sellers to pay tax only on the profit margin obtained in each transaction.
What are the requirements for applying REBU to the sale of cars?
To benefit from the special scheme for second-hand goods when selling a used car, the following requirements must be met:
Acquire vehicles from non-professional taxable persons: private individuals or businesses that have not previously deducted VAT.
Act in one's own name: it does not apply to intermediaries or commission agents.
Be registered under the special scheme for second-hand goods with the tax authorities.
Keep a record book of the transactions covered by REBU
To buy second-hand vehicles under REBU, dealers must record each transaction in detail.
In addition, applying REBU is voluntary, so the seller may choose to waive this special scheme if they consider it appropriate.
What advantages does opting for the Special Scheme for Second-hand Goods have in the buying and selling of cars?
The main advantages of applying REBU to the buying and selling of used cars are:
Avoids double VAT taxation: the seller only pays tax on the margin obtained, not on the full value of the vehicle.
Allows competitive prices to be maintained: by paying less tax, better prices can be offered.
Simplifies tax obligations: VAT calculation is easier when only the margin is taken into account.
Reduces the tax burden on used-vehicle buying and selling transactions.
In short, REBU benefits both sellers and buyers of used cars by reducing the tax costs of these transactions.
Obligations in invoicing and record keeping
Sellers covered by the special scheme for second-hand goods must meet certain formal obligations:
Invoicing
Do not separate the VAT amount: it is included in the total price.
State on the invoice that the "Special scheme for second-hand goods" applies.
Issue a signed transfer document in sales between private individuals.
Record keeping
Register under the special scheme when starting the activity.
Keep a REBU record book to note all transactions.
Keep purchase invoices for 5 years.
Failure to comply with these formal obligations may result in tax penalties, so it is essential to comply with the regulations if this special tax scheme is applied.
VAT calculation under REBU
The main feature of REBU is that the tax base for calculating VAT is not the vehicle's total selling price, but only the gross margin obtained.
There are two methods for determining the tax base under the second-hand goods scheme. To avoid errors and save time, our revolutionary dealership management platform, Dealcar, automatically carries out these calculations and reflects them in the invoicing.
Transaction by transaction
The gross margin is calculated for each transaction using the formula:
Taxable base = Selling price - Purchase price
The corresponding VAT rate, currently 21%, is applied to that margin.
Overall determination
It is calculated quarterly or annually, taking into account the gross margin of all transactions together. It can only be applied to certain products.
In any case, VAT under REBU only taxes the seller's margin, not the car's total value. This represents important tax savings.
VAT deduction in REBU transactions
Although, as a general rule, VAT incurred on the purchase of vehicles is not deductible under REBU, VAT on the following items can be deducted:
Services received for repairs or maintenance
Parts and spare parts incorporated into the vehicles
Rental of premises or machinery related to the activity
Therefore, although VAT paid when acquiring the used car cannot be deducted, there are certain deductible items that reduce the tax bill.
Practical example of selling a car with REBU
Let's look at a simple example to understand how REBU is applied when selling a used car:
A dealership buys a used vehicle for 8.000€ (without VAT) from a private individual and later sells it for 10.000€ plus VAT. What is the tax base and VAT under the second-hand goods scheme?
Solution:
Purchase price: 8.000€
Selling price: 10.000€
Buying and selling margin: 10.000€ - 8.000€ = 2.000€
Taxable base = : 2.000/1,21 = 1.652,90
REBU = 2.000 - 1652,90 = 347,10€
Therefore, the dealership would only pay tax on the 347,10€ of VAT corresponding to its profit margin, not on the vehicle's total value.
Frequently asked questions about REBU
What happens if I sell a car at a loss under REBU?
In that case, the tax base is 0. The negative margin is added to the purchase price of the next transaction.
Can all VAT incurred under REBU be deducted?
No. VAT can only be deducted on certain services/goods, not the VAT paid when acquiring the vehicles.
What penalties exist for failing to comply with REBU obligations?
Mainly tax fines for not keeping the record book properly, not providing the information on the invoice, or accounting irregularities.
Conclusion
In short, the Special Scheme for Second-hand Goods is very beneficial for companies and self-employed professionals engaged in the buying and selling of used vehicles, as it allows them to make significant savings on their tax bill.
However, to apply REBU correctly it is necessary to comply with certain requirements and formal obligations set out in the current regulations. In addition, VAT is calculated in a special way, taking into account only the margin obtained on the transactions.
We hope this complete guide has answered your questions about the practical application of the second-hand goods scheme in the used-car market.
The Special Scheme for Second-hand Goods (REBU) is a tax system applied to the buying and selling of used vehicles in Spain. This scheme helps avoid double VAT taxation and offers advantages for both sellers and buyers of used cars.
In this complete guide to REBU we explain in detail what it is, its advantages, obligations, VAT calculation, and answer the most frequently asked questions about its application in the used-vehicle market.
What is REBU (Special Scheme for Second-hand Goods)?
The Special Scheme for Second-hand Goods (REBU) is a voluntary tax system that applies to supplies of second-hand goods carried out by businesses or self-employed persons acting in their own name.
This scheme is set out in Article 135 of the VAT Act 37/1992 and its aim is to avoid the double taxation that would arise from applying the standard VAT scheme to goods that have already borne that tax.
REBU applies especially to the buying and selling of used vehicles, allowing sellers to pay tax only on the profit margin obtained in each transaction.
What are the requirements for applying REBU to the sale of cars?
To benefit from the special scheme for second-hand goods when selling a used car, the following requirements must be met:
Acquire vehicles from non-professional taxable persons: private individuals or businesses that have not previously deducted VAT.
Act in one's own name: it does not apply to intermediaries or commission agents.
Be registered under the special scheme for second-hand goods with the tax authorities.
Keep a record book of the transactions covered by REBU
To buy second-hand vehicles under REBU, dealers must record each transaction in detail.
In addition, applying REBU is voluntary, so the seller may choose to waive this special scheme if they consider it appropriate.
What advantages does opting for the Special Scheme for Second-hand Goods have in the buying and selling of cars?
The main advantages of applying REBU to the buying and selling of used cars are:
Avoids double VAT taxation: the seller only pays tax on the margin obtained, not on the full value of the vehicle.
Allows competitive prices to be maintained: by paying less tax, better prices can be offered.
Simplifies tax obligations: VAT calculation is easier when only the margin is taken into account.
Reduces the tax burden on used-vehicle buying and selling transactions.
In short, REBU benefits both sellers and buyers of used cars by reducing the tax costs of these transactions.
Obligations in invoicing and record keeping
Sellers covered by the special scheme for second-hand goods must meet certain formal obligations:
Invoicing
Do not separate the VAT amount: it is included in the total price.
State on the invoice that the "Special scheme for second-hand goods" applies.
Issue a signed transfer document in sales between private individuals.
Record keeping
Register under the special scheme when starting the activity.
Keep a REBU record book to note all transactions.
Keep purchase invoices for 5 years.
Failure to comply with these formal obligations may result in tax penalties, so it is essential to comply with the regulations if this special tax scheme is applied.
VAT calculation under REBU
The main feature of REBU is that the tax base for calculating VAT is not the vehicle's total selling price, but only the gross margin obtained.
There are two methods for determining the tax base under the second-hand goods scheme. To avoid errors and save time, our revolutionary dealership management platform, Dealcar, automatically carries out these calculations and reflects them in the invoicing.
Transaction by transaction
The gross margin is calculated for each transaction using the formula:
Taxable base = Selling price - Purchase price
The corresponding VAT rate, currently 21%, is applied to that margin.
Overall determination
It is calculated quarterly or annually, taking into account the gross margin of all transactions together. It can only be applied to certain products.
In any case, VAT under REBU only taxes the seller's margin, not the car's total value. This represents important tax savings.
VAT deduction in REBU transactions
Although, as a general rule, VAT incurred on the purchase of vehicles is not deductible under REBU, VAT on the following items can be deducted:
Services received for repairs or maintenance
Parts and spare parts incorporated into the vehicles
Rental of premises or machinery related to the activity
Therefore, although VAT paid when acquiring the used car cannot be deducted, there are certain deductible items that reduce the tax bill.
Practical example of selling a car with REBU
Let's look at a simple example to understand how REBU is applied when selling a used car:
A dealership buys a used vehicle for 8.000€ (without VAT) from a private individual and later sells it for 10.000€ plus VAT. What is the tax base and VAT under the second-hand goods scheme?
Solution:
Purchase price: 8.000€
Selling price: 10.000€
Buying and selling margin: 10.000€ - 8.000€ = 2.000€
Taxable base = : 2.000/1,21 = 1.652,90
REBU = 2.000 - 1652,90 = 347,10€
Therefore, the dealership would only pay tax on the 347,10€ of VAT corresponding to its profit margin, not on the vehicle's total value.
Frequently asked questions about REBU
What happens if I sell a car at a loss under REBU?
In that case, the tax base is 0. The negative margin is added to the purchase price of the next transaction.
Can all VAT incurred under REBU be deducted?
No. VAT can only be deducted on certain services/goods, not the VAT paid when acquiring the vehicles.
What penalties exist for failing to comply with REBU obligations?
Mainly tax fines for not keeping the record book properly, not providing the information on the invoice, or accounting irregularities.
Conclusion
In short, the Special Scheme for Second-hand Goods is very beneficial for companies and self-employed professionals engaged in the buying and selling of used vehicles, as it allows them to make significant savings on their tax bill.
However, to apply REBU correctly it is necessary to comply with certain requirements and formal obligations set out in the current regulations. In addition, VAT is calculated in a special way, taking into account only the margin obtained on the transactions.
We hope this complete guide has answered your questions about the practical application of the second-hand goods scheme in the used-car market.
