Table of Contents
Why distinguishing between corporate and private clients matters
Selling to a private individual: the REBU scheme
Selling to a company or sole trader: itemised VAT
Practical comparison with real numbers
When you cannot apply REBU even if you sell to a private individual
Intra-Community deliveries and exports
Simplified invoice vs full invoice: when to use each
Common tax errors in dealerships
How Dealcar simplifies invoicing
Frequently asked questions
In the sale of used cars, not all operations are taxed the same. The same car, bought at the same price, generates completely different tax obligations depending on whether you sell it to a private individual, a company, a sole trader or a customer in another EU country.
Most dealerships are aware of the existence of the REBU (Special Scheme for Second-Hand Goods) and know that when selling to private individuals they are taxed on the margin. But when it comes down to the details (when REBU can be applied and when not, what happens if the car was bought with deductible VAT, how to invoice a sale to a company that is going to deduct the VAT), doubts arise and, with them, errors that can end up in an inspection.
In this article we review the real tax differences between selling to companies and to private individuals, with practical examples and concrete figures.
Why distinguishing between corporate and private clients matters
From a tax point of view, the type of customer determines three things: which tax scheme you apply to the transaction, how you issue the invoice and what documentation obligations you have.
When you sell to a private individual, you can normally benefit from the Special Scheme for Second-Hand Goods (REBU), which allows you to pay tax only on the profit margin. VAT is not itemised on the invoice and the private individual pays a closed final price.
When you sell to a company or sole trader who is going to use the car in their business, the transaction operates under standard VAT (21%). The invoice must itemise the taxable base and VAT, and the buyer can deduct that VAT on their tax return.
Confusing one scheme with another, applying REBU when it is not applicable, or not itemising VAT when the customer needs it to deduct are errors that cause problems for both you and your customer. And the Tax Agency detects them.
Selling to a private individual: the REBU scheme
The REBU is the tax scheme that most benefits used car dealerships when selling to private individuals. Its main advantage is that you only pay tax on the profit margin, not on the total sales price.
How it works
You buy a car for 6,000 euros from a private individual (without the right to deduct VAT, because the private individual does not issue an invoice with VAT). You sell it for 8,000 euros. Your gross margin is 2,000 euros. Under REBU, you only pay VAT on that 2,000 euros margin, not on the total 8,000 euros.
The VAT you pay to the Tax Agency is: 2,000 / 1.21 = 1,652.89 euros of taxable base, and 347.11 euros of VAT. Your net profit before personal income tax or corporation tax is 1,652.89 euros.
How it is reflected on the invoice
When you apply REBU, the invoice to the private client does not itemise the VAT. The price shown is the final price. The invoice must include the mention "Special scheme for second-hand goods" or reference to article 135 of the VAT Law, but the buyer does not see the breakdown of base + VAT.
This is important: by not itemising VAT, the private buyer cannot deduct anything (which does not affect them, as private individuals do not deduct VAT). But if your customer is a company that needs to deduct VAT, you cannot use REBU. We will look at this in the next section.
Requirement to apply REBU
You cannot always apply REBU. The scheme is only applicable when the car was acquired without the right to deduct VAT. That is, when you bought it from a private individual, from another dealership that also applied REBU, or from a company that did not pass on VAT in the sale.
If you bought the car with an invoice showing itemised VAT (for example, from a leasing company or an official dealership that invoiced you with standard VAT) and you deducted that VAT, you cannot apply REBU in the resale. You will have to invoice with standard VAT, regardless of whether the buyer is a private individual or a company.
Selling to a company or sole trader: itemised VAT
When your client is a company or a sole trader who is going to use the car for their professional activity, the transaction must be invoiced with itemised VAT at the standard rate of 21%.
How it works
You sell the same 8,000 euro car, but to a company. The invoice will be: taxable base 8,000 euros + 21% VAT (1,680 euros) = total 9,680 euros.
The company pays 9,680 euros but can deduct the 1,680 euros of VAT on its quarterly return. For the company, the real cost is 8,000 euros.
For you as a dealership, the gross profit is 2,000 euros (8,000 - 6,000 acquisition cost). But unlike REBU, the VAT you pay to the Tax Agency is 1,680 euros (21% on the total), not on the margin. If you deducted VAT when buying the car, it is offset. If not (because you bought it from a private individual), the tax impact is greater.
Formal requirements of the invoice
The invoice to a company must include the buyer's full tax details (company name, NIF, tax address), taxable base and the rate of VAT applied (21%), the itemised VAT amount, transaction date, and sequential invoice number.
A common mistake is for the dealership not to ask for the full tax details of the buying company. Without a correct NIF on the invoice, the buyer will not be able to deduct the VAT, which leads to complaints and a bad image.
When the company cannot deduct 100%
Not all companies can deduct 100% of the VAT on a car. Spanish regulations limit the deduction to 50% if the vehicle is not used exclusively for professional activity. You can only deduct 100% if the car is used entirely for the activity (commercial vehicles, taxis, driving schools, rental, commercial representatives with justification, etc.).
It is advisable to inform the corporate client of this limitation if they ask, but the responsibility for the deduction is theirs, not yours. Your obligation is to issue the invoice correctly with itemised VAT.
Practical comparison with real numbers
To make the differences clear, let's look at the same car sold under both schemes.
Base details: Car bought from a private individual for 6,000 euros (without VAT). Selling price: 8,000 euros.
Concept | Sale to private individual (REBU) | Sale to company (Standard VAT) |
|---|---|---|
Selling price | 8,000 € (VAT included in margin) | 8,000 € + 1,680 € VAT = 9,680 € |
VAT Taxable base | 1,652.89 € (margin / 1.21) | 8,000 € |
VAT to pay to the Tax Agency | 347.11 € | 1,680 € |
The buyer pays | 8,000 € | 9,680 € (deducts 1,680 € if entitled) |
Dealership's net profit | 1,652.89 € | 2,000 € (before CT) |
Itemised VAT on invoice | No | Yes |
The difference in VAT paid to the Tax Agency is notable: 347 euros vs 1,680 euros. That is why the REBU is so advantageous for the trade when selling to private individuals. But you can only use it when the requirements are met.
Now let's look at the same case but with a car you bought from a leasing company with an invoice showing VAT (6,000 € + 1,260 € VAT = 7,260 €, and you deducted the 1,260 €).
Concept | Sale to private individual (Standard VAT, not REBU) | Sale to company (Standard VAT) |
|---|---|---|
Selling price | 9,680 € (8,000 + VAT) | 9,680 € (8,000 + VAT) |
Output VAT | 1,680 € | 1,680 € |
Input VAT deducted on purchase | 1,260 € | 1,260 € |
Net VAT to pay | 420 € | 420 € |
In this case, having bought with VAT, you cannot apply REBU and the tax transaction is identical regardless of who you sell to.
When you cannot apply REBU even if you sell to a private individual
This is one of the points that generates the most confusion. It is not enough for the buyer to be a private individual to be able to apply REBU. The scheme depends on how you acquired the car, not who you sell it to.
You cannot apply REBU if you bought the car with an invoice showing itemised VAT and you deducted it. This happens when you buy from leasing companies, from official dealerships that invoice you with standard VAT, or from companies that sell vehicles from their fleet with VAT.
You can apply REBU if you bought the car from a private individual (without a VAT invoice), from another dealership that also applied REBU, or from a company that sold to you without passing on VAT (for example, because the car was used for an exempt activity).
The key is the origin of the purchase, not the destination of the sale. If you have doubts about a specific car, consult your tax advisor before issuing the invoice.
Entregas intracomunitarias y exportaciones
If you sell to a customer in another EU country or outside it, the tax rules change again.
Sale to an EU company (intra-Community delivery)
If the buyer is a company with a valid intra-Community VAT number (verifiable in the European Commission's VIES system), the transaction may be exempt from VAT. You issue an invoice without VAT, with the mention "Exempt intra-Community delivery, article 25 of the VAT Law", and the buying company self-assesses the VAT in its country.
Requirements for the exemption: the buyer must have an active intra-Community VAT number in VIES, the vehicle must physically leave Spain, and you must keep proof of transport (CMR, delivery note, transport documentation).
If you do not meet these requirements and the Tax Agency detects it, you will be required to pay the uncharged VAT plus surcharges and interest.
Sale to an EU private individual
If the buyer is a private individual from another EU country, you apply Spanish VAT (21%) as in any domestic sale to a private individual. The individual cannot deduct anything.
Export outside the EU
Exports to countries outside the EU are exempt from VAT. You issue an invoice without VAT with the export mention and keep the SAD (Single Administrative Document) as proof.
Simplified invoice vs full invoice: when to use each
Regulations allow simplified invoices (similar to a receipt) to be issued in sales to private individuals when the amount does not exceed 400 euros. In practice, this rarely applies to car sales.
For all vehicle sales transactions, it is recommended to always issue a full invoice. This includes all details of the seller and buyer, vehicle description (make, model, registration number, chassis number), taxable base, VAT (or mention of REBU), and invoice date and number.
When the buyer is a company, a full invoice is mandatory without exception. When it is a private individual, it is not strictly mandatory if the amount is low, but in car sales it should always be a full invoice due to the traceability required by the DGT (Directorate-General for Traffic) and the Tax Agency for these goods.
Common tax errors in dealerships
Applying REBU to a car bought with deducted VAT. This is the most serious mistake and the one that generates the most penalties. If you bought with an invoice showing VAT and you deducted it, you must sell with standard VAT. Applying REBU in this situation is an irregularity that the Tax Agency detects when cross-referencing data.
Not verifying the intra-Community VAT number in sales to EU companies. Selling without VAT to a company whose VAT number is not active in VIES forces you to pay the VAT you did not pass on. Always verify before issuing the invoice.
Not asking companies for full tax details. Without a correct NIF, company name and tax address, the invoice is invalid and the buyer cannot deduct. This leads to claims and loss of trust.
Confusing a negative margin with REBU. If you sell a car for less than you paid (negative margin), there is no VAT to pay under REBU, but you must still record the transaction correctly. You cannot offset the negative margin with other REBU transactions.
Not keeping transport documentation in intra-Community sales. Without proof that the car left Spain, the VAT exemption is not valid. The Tax Agency can claim 21% from you years later.
How Dealcar simplifies invoicing
Correctly managing the taxation of each transaction requires knowing which scheme to apply, issuing the invoice in the correct format and keeping the appropriate documentation. Doing this manually, transaction by transaction, is a constant source of errors.
Dealcar integrates features designed so that the dealership does not have to worry about these details.
Automatic application of the tax scheme. When registering the purchase of a vehicle, Dealcar identifies whether it was bought with or without VAT. When the time comes to sell, the platform automatically suggests whether REBU or standard VAT applies, reducing the risk of error.
Verifactu electronic invoicing. Dealcar generates invoices compliant with Verifactu regulations, with all mandatory fields, the correct tax scheme and the traceability required by the Tax Agency.
Margin control per transaction. Each sales file shows the real margin, the VAT to pay and the net profit. You have full visibility over the profitability of each transaction before closing it.
Documented files. All documentation for each sale (purchase invoice, sales invoice, contract, DGT report) is centralised in the vehicle file, ready for any request from the Tax Agency.
If you want to see how it works, request a Dealcar demo.
Frequently asked questions
Can I choose between applying REBU or standard VAT?
It is not a free choice. If you bought the car without the right to deduct VAT (from a private individual or under REBU), you must apply REBU when selling. If you bought with deducted VAT, you must apply standard VAT. The scheme depends on the origin, not your preference.
What happens if a company buys a car from me and I applied REBU?
If you sell with REBU, the invoice does not itemise VAT. The buying company will not be able to deduct anything. Some professional buyers will ask you to invoice with standard VAT so they can deduct. You can only do this if the car was acquired with deductible VAT. If not, you must apply REBU even if the buyer is a company.
Are the penalties for wrongly applying the REBU serious?
Yes. The Tax Agency can claim the unpaid VAT plus surcharges ranging from 1% to 100% of the amount, depending on the severity and intent. Furthermore, if a pattern of irregularities is detected, it can lead to a full inspection of the business activity.
How do I invoice if I sell a car to a sole trader who uses it for their business?
Just like a company: invoice with itemised VAT at 21% (provided the car was bought with deductible VAT). The sole trader will be able to deduct the VAT to the extent that the car is used for their professional activity.
What happens if I sell a car and the margin is zero or negative?
If you apply REBU and the margin is zero or negative, there is no VAT to pay for that transaction. You must still record the invoice and the transaction. You cannot offset negative REBU margins with positive margins from other transactions.
Table of Contents
Why distinguishing between corporate and private clients matters
Selling to a private individual: the REBU scheme
Selling to a company or sole trader: itemised VAT
Practical comparison with real numbers
When you cannot apply REBU even if you sell to a private individual
Intra-Community deliveries and exports
Simplified invoice vs full invoice: when to use each
Common tax errors in dealerships
How Dealcar simplifies invoicing
Frequently asked questions
In the sale of used cars, not all operations are taxed the same. The same car, bought at the same price, generates completely different tax obligations depending on whether you sell it to a private individual, a company, a sole trader or a customer in another EU country.
Most dealerships are aware of the existence of the REBU (Special Scheme for Second-Hand Goods) and know that when selling to private individuals they are taxed on the margin. But when it comes down to the details (when REBU can be applied and when not, what happens if the car was bought with deductible VAT, how to invoice a sale to a company that is going to deduct the VAT), doubts arise and, with them, errors that can end up in an inspection.
In this article we review the real tax differences between selling to companies and to private individuals, with practical examples and concrete figures.
Why distinguishing between corporate and private clients matters
From a tax point of view, the type of customer determines three things: which tax scheme you apply to the transaction, how you issue the invoice and what documentation obligations you have.
When you sell to a private individual, you can normally benefit from the Special Scheme for Second-Hand Goods (REBU), which allows you to pay tax only on the profit margin. VAT is not itemised on the invoice and the private individual pays a closed final price.
When you sell to a company or sole trader who is going to use the car in their business, the transaction operates under standard VAT (21%). The invoice must itemise the taxable base and VAT, and the buyer can deduct that VAT on their tax return.
Confusing one scheme with another, applying REBU when it is not applicable, or not itemising VAT when the customer needs it to deduct are errors that cause problems for both you and your customer. And the Tax Agency detects them.
Selling to a private individual: the REBU scheme
The REBU is the tax scheme that most benefits used car dealerships when selling to private individuals. Its main advantage is that you only pay tax on the profit margin, not on the total sales price.
How it works
You buy a car for 6,000 euros from a private individual (without the right to deduct VAT, because the private individual does not issue an invoice with VAT). You sell it for 8,000 euros. Your gross margin is 2,000 euros. Under REBU, you only pay VAT on that 2,000 euros margin, not on the total 8,000 euros.
The VAT you pay to the Tax Agency is: 2,000 / 1.21 = 1,652.89 euros of taxable base, and 347.11 euros of VAT. Your net profit before personal income tax or corporation tax is 1,652.89 euros.
How it is reflected on the invoice
When you apply REBU, the invoice to the private client does not itemise the VAT. The price shown is the final price. The invoice must include the mention "Special scheme for second-hand goods" or reference to article 135 of the VAT Law, but the buyer does not see the breakdown of base + VAT.
This is important: by not itemising VAT, the private buyer cannot deduct anything (which does not affect them, as private individuals do not deduct VAT). But if your customer is a company that needs to deduct VAT, you cannot use REBU. We will look at this in the next section.
Requirement to apply REBU
You cannot always apply REBU. The scheme is only applicable when the car was acquired without the right to deduct VAT. That is, when you bought it from a private individual, from another dealership that also applied REBU, or from a company that did not pass on VAT in the sale.
If you bought the car with an invoice showing itemised VAT (for example, from a leasing company or an official dealership that invoiced you with standard VAT) and you deducted that VAT, you cannot apply REBU in the resale. You will have to invoice with standard VAT, regardless of whether the buyer is a private individual or a company.
Selling to a company or sole trader: itemised VAT
When your client is a company or a sole trader who is going to use the car for their professional activity, the transaction must be invoiced with itemised VAT at the standard rate of 21%.
How it works
You sell the same 8,000 euro car, but to a company. The invoice will be: taxable base 8,000 euros + 21% VAT (1,680 euros) = total 9,680 euros.
The company pays 9,680 euros but can deduct the 1,680 euros of VAT on its quarterly return. For the company, the real cost is 8,000 euros.
For you as a dealership, the gross profit is 2,000 euros (8,000 - 6,000 acquisition cost). But unlike REBU, the VAT you pay to the Tax Agency is 1,680 euros (21% on the total), not on the margin. If you deducted VAT when buying the car, it is offset. If not (because you bought it from a private individual), the tax impact is greater.
Formal requirements of the invoice
The invoice to a company must include the buyer's full tax details (company name, NIF, tax address), taxable base and the rate of VAT applied (21%), the itemised VAT amount, transaction date, and sequential invoice number.
A common mistake is for the dealership not to ask for the full tax details of the buying company. Without a correct NIF on the invoice, the buyer will not be able to deduct the VAT, which leads to complaints and a bad image.
When the company cannot deduct 100%
Not all companies can deduct 100% of the VAT on a car. Spanish regulations limit the deduction to 50% if the vehicle is not used exclusively for professional activity. You can only deduct 100% if the car is used entirely for the activity (commercial vehicles, taxis, driving schools, rental, commercial representatives with justification, etc.).
It is advisable to inform the corporate client of this limitation if they ask, but the responsibility for the deduction is theirs, not yours. Your obligation is to issue the invoice correctly with itemised VAT.
Practical comparison with real numbers
To make the differences clear, let's look at the same car sold under both schemes.
Base details: Car bought from a private individual for 6,000 euros (without VAT). Selling price: 8,000 euros.
Concept | Sale to private individual (REBU) | Sale to company (Standard VAT) |
|---|---|---|
Selling price | 8,000 € (VAT included in margin) | 8,000 € + 1,680 € VAT = 9,680 € |
VAT Taxable base | 1,652.89 € (margin / 1.21) | 8,000 € |
VAT to pay to the Tax Agency | 347.11 € | 1,680 € |
The buyer pays | 8,000 € | 9,680 € (deducts 1,680 € if entitled) |
Dealership's net profit | 1,652.89 € | 2,000 € (before CT) |
Itemised VAT on invoice | No | Yes |
The difference in VAT paid to the Tax Agency is notable: 347 euros vs 1,680 euros. That is why the REBU is so advantageous for the trade when selling to private individuals. But you can only use it when the requirements are met.
Now let's look at the same case but with a car you bought from a leasing company with an invoice showing VAT (6,000 € + 1,260 € VAT = 7,260 €, and you deducted the 1,260 €).
Concept | Sale to private individual (Standard VAT, not REBU) | Sale to company (Standard VAT) |
|---|---|---|
Selling price | 9,680 € (8,000 + VAT) | 9,680 € (8,000 + VAT) |
Output VAT | 1,680 € | 1,680 € |
Input VAT deducted on purchase | 1,260 € | 1,260 € |
Net VAT to pay | 420 € | 420 € |
In this case, having bought with VAT, you cannot apply REBU and the tax transaction is identical regardless of who you sell to.
When you cannot apply REBU even if you sell to a private individual
This is one of the points that generates the most confusion. It is not enough for the buyer to be a private individual to be able to apply REBU. The scheme depends on how you acquired the car, not who you sell it to.
You cannot apply REBU if you bought the car with an invoice showing itemised VAT and you deducted it. This happens when you buy from leasing companies, from official dealerships that invoice you with standard VAT, or from companies that sell vehicles from their fleet with VAT.
You can apply REBU if you bought the car from a private individual (without a VAT invoice), from another dealership that also applied REBU, or from a company that sold to you without passing on VAT (for example, because the car was used for an exempt activity).
The key is the origin of the purchase, not the destination of the sale. If you have doubts about a specific car, consult your tax advisor before issuing the invoice.
Entregas intracomunitarias y exportaciones
If you sell to a customer in another EU country or outside it, the tax rules change again.
Sale to an EU company (intra-Community delivery)
If the buyer is a company with a valid intra-Community VAT number (verifiable in the European Commission's VIES system), the transaction may be exempt from VAT. You issue an invoice without VAT, with the mention "Exempt intra-Community delivery, article 25 of the VAT Law", and the buying company self-assesses the VAT in its country.
Requirements for the exemption: the buyer must have an active intra-Community VAT number in VIES, the vehicle must physically leave Spain, and you must keep proof of transport (CMR, delivery note, transport documentation).
If you do not meet these requirements and the Tax Agency detects it, you will be required to pay the uncharged VAT plus surcharges and interest.
Sale to an EU private individual
If the buyer is a private individual from another EU country, you apply Spanish VAT (21%) as in any domestic sale to a private individual. The individual cannot deduct anything.
Export outside the EU
Exports to countries outside the EU are exempt from VAT. You issue an invoice without VAT with the export mention and keep the SAD (Single Administrative Document) as proof.
Simplified invoice vs full invoice: when to use each
Regulations allow simplified invoices (similar to a receipt) to be issued in sales to private individuals when the amount does not exceed 400 euros. In practice, this rarely applies to car sales.
For all vehicle sales transactions, it is recommended to always issue a full invoice. This includes all details of the seller and buyer, vehicle description (make, model, registration number, chassis number), taxable base, VAT (or mention of REBU), and invoice date and number.
When the buyer is a company, a full invoice is mandatory without exception. When it is a private individual, it is not strictly mandatory if the amount is low, but in car sales it should always be a full invoice due to the traceability required by the DGT (Directorate-General for Traffic) and the Tax Agency for these goods.
Common tax errors in dealerships
Applying REBU to a car bought with deducted VAT. This is the most serious mistake and the one that generates the most penalties. If you bought with an invoice showing VAT and you deducted it, you must sell with standard VAT. Applying REBU in this situation is an irregularity that the Tax Agency detects when cross-referencing data.
Not verifying the intra-Community VAT number in sales to EU companies. Selling without VAT to a company whose VAT number is not active in VIES forces you to pay the VAT you did not pass on. Always verify before issuing the invoice.
Not asking companies for full tax details. Without a correct NIF, company name and tax address, the invoice is invalid and the buyer cannot deduct. This leads to claims and loss of trust.
Confusing a negative margin with REBU. If you sell a car for less than you paid (negative margin), there is no VAT to pay under REBU, but you must still record the transaction correctly. You cannot offset the negative margin with other REBU transactions.
Not keeping transport documentation in intra-Community sales. Without proof that the car left Spain, the VAT exemption is not valid. The Tax Agency can claim 21% from you years later.
How Dealcar simplifies invoicing
Correctly managing the taxation of each transaction requires knowing which scheme to apply, issuing the invoice in the correct format and keeping the appropriate documentation. Doing this manually, transaction by transaction, is a constant source of errors.
Dealcar integrates features designed so that the dealership does not have to worry about these details.
Automatic application of the tax scheme. When registering the purchase of a vehicle, Dealcar identifies whether it was bought with or without VAT. When the time comes to sell, the platform automatically suggests whether REBU or standard VAT applies, reducing the risk of error.
Verifactu electronic invoicing. Dealcar generates invoices compliant with Verifactu regulations, with all mandatory fields, the correct tax scheme and the traceability required by the Tax Agency.
Margin control per transaction. Each sales file shows the real margin, the VAT to pay and the net profit. You have full visibility over the profitability of each transaction before closing it.
Documented files. All documentation for each sale (purchase invoice, sales invoice, contract, DGT report) is centralised in the vehicle file, ready for any request from the Tax Agency.
If you want to see how it works, request a Dealcar demo.
Frequently asked questions
Can I choose between applying REBU or standard VAT?
It is not a free choice. If you bought the car without the right to deduct VAT (from a private individual or under REBU), you must apply REBU when selling. If you bought with deducted VAT, you must apply standard VAT. The scheme depends on the origin, not your preference.
What happens if a company buys a car from me and I applied REBU?
If you sell with REBU, the invoice does not itemise VAT. The buying company will not be able to deduct anything. Some professional buyers will ask you to invoice with standard VAT so they can deduct. You can only do this if the car was acquired with deductible VAT. If not, you must apply REBU even if the buyer is a company.
Are the penalties for wrongly applying the REBU serious?
Yes. The Tax Agency can claim the unpaid VAT plus surcharges ranging from 1% to 100% of the amount, depending on the severity and intent. Furthermore, if a pattern of irregularities is detected, it can lead to a full inspection of the business activity.
How do I invoice if I sell a car to a sole trader who uses it for their business?
Just like a company: invoice with itemised VAT at 21% (provided the car was bought with deductible VAT). The sole trader will be able to deduct the VAT to the extent that the car is used for their professional activity.
What happens if I sell a car and the margin is zero or negative?
If you apply REBU and the margin is zero or negative, there is no VAT to pay for that transaction. You must still record the invoice and the transaction. You cannot offset negative REBU margins with positive margins from other transactions.
