The same car can pay VAT in Germany, in Spain or nowhere, depending on how it is bought. Understanding this before agreeing the price avoids paying it twice or discovering a tax that was not in the budget.
New car bought in the EU: VAT in Spain
For VAT purposes a car counts as new if it is only a few months from first entry into service or has low mileage. In that case the seller in another EU country invoices without VAT and the buyer pays it in Spain, at the Spanish rate, on form 309, before registration. The DGT asks for the receipt.
Used car bought from an EU dealer
Dealers usually apply their country's second-hand margin scheme: VAT is included in the price and is not paid again in Spain. If the invoice shows VAT from the country of origin, it is also settled there. Ask for the invoice to state the scheme applied.
Used car bought from a private seller in the EU
A private person does not charge VAT, so there is no VAT in the origin country or in Spain. The registration tax, the import inspection and registration are still required.
Car from outside the EU
This is an import in the strict sense: the car goes through customs, a customs declaration (DUA) is filed and import duty and import VAT are paid on the value of the car, transport and the duty itself. The general EU duty on passenger cars is 10%, unless the car's origin allows a preferential agreement to apply. If you are moving to Spain with your own car, reliefs may apply; see moving to Valencia with your car and, for the British case, importing a car from the UK.
"Before negotiating a price abroad, ask two things: is it new for VAT purposes, and which scheme does the seller apply. That is half of the real cost."
VAT is not the registration tax
They are separate taxes paid separately. VAT taxes the purchase; the registration tax (IEDMT) taxes first registration in Spain and depends on CO2 emissions. A used car bought from a private seller in Germany pays no VAT but may pay IEDMT. See registering an imported vehicle.
Summary
| Case | VAT in origin | VAT in Spain |
|---|---|---|
| New, bought in the EU | No | Yes, form 309 |
| Used, from an EU dealer | Yes, included in the price | No |
| Used, from an EU private seller | No | No |
| From outside the EU | No | Yes, at customs, plus duty |
Frequently asked questions
When is a car new for VAT purposes?
When it is only a few months from first entry into service or has very low mileage. Meeting either condition makes it new.
Could I pay VAT twice?
It can happen if a seller charges their country's VAT on a car that is actually new for tax purposes. That is why the invoice should be checked before paying.
What is form 309?
The return a private individual uses to pay Spanish VAT on a new car bought in another EU country.
Do cars from the UK pay import duty?
It depends on the vehicle's origin and whether it can be proven so the EU-UK trade agreement applies. If not, the general duty applies.
Does VAT replace the registration tax?
No. They are independent and each is settled separately.