The Tax Office will refund the IUC – Car Tax paid for imported used cars in the last four years.
If you have bought or imported a used car, older than 2007 and have paid the IUC – Car Tax, you can get that amount back. Know what’s at stake and what you should do to get your money back.
Why is the money from the IUC – Car Tax being refunded?
The European Union’s Justice Court considered illegal all the IUC – car taxes charged by the Portuguese Tax Authorities in respect of imported cards which are older than 2007. Why? Because in practice, the treasury wasn’t taking into consideration the fact that the used imported cars had already a previous first license plate from the country of origin. What would happen was, reaching Portugal, the car would be registered as new and the age of the vehicle wouldn’t count when the tax was calculated. Meaning, the tax payer were paying too much tax.
Has the law been changed?
Yes. The new rules for the IUC – Car Tax will apply starting 2020.
How is the money going to be refunded?
The Tax Office is still determining a way to make the refunds automatic so that the taxpayers don’t have to go through all the procedures, law and bureaucratic– which could take several months. When the time comes to pay the Tax Circulation of 2020, there should appear, in the Tax Portal, an area where you will have to confirm the date of the first license plate of the car bought in the European Union or European Economic Area. The system will calculate the tax you have to pay in 2020 and if there is a refund to receive from previous years. In case there is, the Tax Office shall alert the taxpayer about the amount that he will receive.
In case you don’t want to wait for the month when you must pay the IUC – Car Tax of your vehicle, you may place a request for an officious review with the Tax Office. This is done online and AFM can assist you with this.
How much will be refunded?
It will be refunded the amount paid for 4 years. Even though in question it’s vehicles before 2007, the law only allows to revise tributary acts on a period of no longer than 4 years.
Which cars are covered?
Passengers Car (vehicles with a maximum gross weight of 3500 Kg and capacity no larger than 9 seats, including the driver, intended to the transport of people)
– Passengers Car with more than 3500 kg and capacity no bigger than 9 seats, including the driver
– Cars of mixed usage (passengers and cargo) with a maximum gross weight of 2500 Kg
What about the license plates?
– If you have imported your vehicle between 1st of July 2007 and 1st of January 2018, you will have to update the information in Tax Portal, of the date of the first license plate, in a country of the European Union or European Economic Area.
– Vehicles imported after 1st January 2018, deriving from a member-state of the EU or European Economic Area, that only has had one previous license plate, doesn’t need to make any changes because the Tax Office will already have that information.
What to do for vehicles with the license plate of January or February 2020?
Considering the Tax Office is still creating a functionality that will refund the money overcharged, it still might not be available the moment you go to pay your IUC – Car Tax. If that is your case, you need to contact one of the tax offices directluy or send the information electronic through the Tax Portal. In the tax portal in the section ‘E-Balcão’, you pick the option “Registar nova questão” (Register new question), next page, “Imposto ou área” (Tax or area) choose “IMT/IS/IUC”, in “Tipo de questão”( type of question) choose “IUC”(Car Tax) and in “Questão” (question) choose “Outros”(others). In the field “Assunto” (subject) you should indicate “Data da primeira matrícula EU” (date of the first license plate) to better identify the question.
If you wish that AFM assists you with this, please send us an email to [email protected]
What If I paid the IUC – Car Tax but am no longer the owner of the vehicle?
The Tax Office will verify who owned the vehicle and will refund the money to those who paid it.
The AFM team will be glad to assist you with this matter.
Please get in touch trough +351 281 20 059 or [email protected]