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V2399-17 21 September 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · exención

Used vehicle dealers may apply ITPAJD exemption if resold within one year

An association of distribution sector companies enquired whether the ITPAJD exemption for the purchase of used vehicles applies when acquiring vehicles from private individuals for resale. The DGT ruled that the exemption is applicable provided legal requirements are met, regardless of whether the seller is a private individual.

The question raised

Whether when the purchase and sale company acquires said vehicle from a private individual and transfers it to its name under the indicated terms, the exemption in the Tax on Property Transfers and Documented Legal Acts provided for in article 45.I.B).17 of the Recast Text of the tax applies, for the case of transfers of used vehicles when the acquirer is a business habitually engaged in purchase and sale and acquires them for resale, provided that the sale of the acquired vehicle is justified within the year following the date of its acquisition.

The DGT's ruling

The acquisition of used vehicles with a mechanical engine for road use is exempt from the ITPAJD if the acquirer is a business habitually engaged in their purchase and sale and acquires them for resale. This exemption is provisional and becomes definitive when the sale of the vehicle within the year following its acquisition is justified. The provision does not require that the vehicle be purchased specifically from a private individual.

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