People with disabilities cannot request retroactive IVTM exemptions

The exemption from the Vehicle Tax on Mechanical Traction (IVTM) for people with disabilities is a tax benefit that raises doubts regarding its application to tax years already accrued. Following a recent binding ruling, the temporal scope of this right and the need for prior administrative action to exercise it have been clarified.

What the DGT has ruled

The Directorate General of Taxes (DGT) has determined that the IVTM exemption for vehicles owned by people with disabilities is subject to request. This implies that the benefit is not applied ex officio, but rather requires the interested party to submit an express application to the corresponding City Council.

Regarding timing, the tax authority establishes that the regulations do not contemplate the retroactive application of this exemption. Therefore, the tax benefit will only take effect from the date it is granted or, failing that, from the tax period following the submission of the application. The inquirer raised the possibility of requesting a refund of undue payments for previous years (2024, 2025, and 2026), but the resolution indicates that it is not possible to recover amounts from concluded periods under this concept.

What this means for you

If you are a person with a disability and own a vehicle, you must understand that the right not to pay the IVTM is not automatically activated upon proving your disability status. The City Council is not obliged to apply the exemption if it has not received a formal request from the taxpayer.

Likewise, this criterion limits the ability to recover taxes paid in previous years. The exemption works prospectively from the date of the application, which means that payments made before formalizing the procedure cannot be subject to a refund through the route of undue payments.

What you should do

To avoid paying this tax in the future, it is necessary to take the following actions:

• Submit the exemption application to your municipality's tax authority as soon as possible.
• Verify the specific deadlines and requirements established in your City Council's tax ordinance, as these may condition the application of the benefit within the current tax year.
• Ensure that the documentation proving the disability is up to date and available for the procedure.