If you want to buy and sell used cars professionally in Spain, you will probably come across the term REBU. In English, it is easier to understand it as Spain’s VAT margin scheme for second-hand goods.
When the legal conditions are met, VAT is not calculated on the full selling price of the vehicle, but on the dealer’s margin.
However, a car does not qualify simply because it is second-hand. You need to know who sold it to you, how the purchase was documented, which VAT treatment applied and what records you must keep.
There is no separate REBU register
You register the business correctly with the Spanish Tax Agency and then check whether each transaction qualifies for the margin scheme.
Not every used car qualifies
The age or mileage of the car is not enough. What matters is mainly who sold it to the dealer and how that purchase was taxed.
Cars are normally checked one by one
For a normal used-car dealership, the VAT margin is generally calculated vehicle by vehicle.
What is REBU in Spain?
REBU is the Spanish abbreviation for the Special Scheme for Second-Hand Goods, Works of Art, Antiques and Collectors’ Items.
For English-speaking clients, the easiest way to understand it is as Spain’s second-hand goods VAT margin scheme.
A typical example is a professional car dealer buying a vehicle from a private individual. The private seller does not charge VAT, so the dealer has no input VAT on the purchase to reclaim.
If the transaction meets the REBU rules, VAT on the later sale is calculated from the dealer’s margin instead of the full selling price of the vehicle.
The scheme is not limited to cars. It can also apply to other reusable movable goods bought for resale, provided the legal conditions are met.
You must be acting as a professional reseller
One of the first points to check is whether the business qualifies as a reseller.
Buying vehicles to resell them
A self-employed person or company that regularly buys used vehicles specifically to sell them again may qualify as a reseller for REBU purposes.
Selling your own company car
A company selling a car that it has used in its own business for several years cannot automatically use REBU simply because the vehicle is second-hand.
How do you register a used-car business for REBU in Spain?
People often ask: “How do I register for REBU?”
Strictly speaking, there is no separate REBU register comparable to Spain’s VIES/ROI register for intra-EU transactions.
Registering as a used-car dealer does not mean every car can automatically be sold under REBU. Each purchase must still meet the rules of the scheme.
Your business activity and tax obligations are registered with the Spanish Tax Agency using Form 036.
This must be dealt with before the activity actually starts. For tax purposes, the business may already have started when you begin buying stock or paying expenses for the new activity, even before your first sale.
Decide how the business will operate
Will you trade as self-employed — an autónomo — or through a Spanish company? Where will you buy the vehicles and how will you sell them?
Register the activity with Form 036
The activity, tax address and relevant Spanish tax obligations must be correctly declared.
Register as self-employed if required
If you operate personally as an autónomo, your Spanish Social Security registration must also be coordinated before you start.
Check EU purchases
If you plan to buy vehicles in Germany, France, Belgium, the Netherlands or another EU country, you must check the VAT treatment and whether VIES/ROI registration is needed.
Set up accounting and invoicing properly
Your records should show how each car was bought, which VAT treatment applies and how the margin will be calculated when it is sold.
If you are starting personally, see our advice for self-employed people and entrepreneurs in Spain.
If you operate through a company, we can coordinate the activity through our tax advisory service for companies and our accounting advisory service.
When can REBU apply to a used car?
Among the situations covered by Spanish VAT rules, the scheme may apply when the professional reseller bought the vehicle from:
A private individual
A person selling their own vehicle without acting as a business or professional.
Another professional reseller
A dealer who has already sold the vehicle under the relevant second-hand goods margin scheme.
Specific exempt transactions
Spanish VAT law also covers certain other situations that need to be checked individually.
A ten-year-old car with 150,000 kilometres does not automatically qualify for REBU. You must check where the vehicle came from and the VAT treatment of the purchase.
Is the margin calculated car by car or on total sales?
Margin on each individual transaction
This is the normal approach for a used-car dealer.
Selling price − purchase price = margin.
The VAT included in that margin is then calculated.
Global profit margin
Spanish VAT rules allow a global margin method for certain categories of goods and, in other situations, where specific authorisation is obtained.
A car dealer cannot simply add up all purchases and all sales for the quarter and apply REBU to the difference.
There is no general vehicle value that determines which method you use. A normal used-car dealership should generally calculate the margin vehicle by vehicle.
Example: how VAT works under REBU
Buying from a private seller and reselling the car
VATable amount within the margin: 3,000 × 100 / 121 = €2,479.34
VAT included in the margin: €520.66
You do not simply add 21% VAT to the full €15,000 selling price.
The REBU margin is not necessarily the dealer’s real commercial profit. Repairs, transport, warranties, advertising, preparation costs, wages and other expenses affect the business profit but are not automatically added to the purchase price for the VAT margin calculation.
What documents do we normally need to set up the activity?
Trading as an autónomo
- Passport, DNI or NIE.
- Spanish Social Security number.
- Tax address.
- Planned starting date.
- Clear description of the activity.
- Details of the premises, yard or office, if any.
- Rental agreement where applicable.
- Information about any other existing business activities.
- Whether you expect to buy in Spain, elsewhere in the EU or both.
Trading through a Spanish company
- Company tax number (NIF).
- Deed of incorporation and articles.
- Commercial Registry details.
- Director or administrator details.
- Registered and tax address.
- Business premises or vehicle yard.
- Starting date.
- Information about Spanish and foreign suppliers.
What records should you keep for each used car?
1. Buying from a private individual
When the seller is not acting as a business or professional, the reseller must prepare the relevant purchase document and obtain the seller’s signature.
- Document number and series where applicable.
- Date.
- Seller’s full name.
- DNI, NIE or identification details.
- Seller’s address.
- Dealer’s tax details.
- Vehicle description.
- Make and model.
- Registration number.
- VIN / chassis number.
- Purchase price.
- Seller’s signature.
It is also sensible to keep the purchase contract, registration document, technical inspection documentation, bank payment evidence and relevant DGT paperwork.
2. Buying from another Spanish business
- Full supplier invoice.
- Supplier tax details.
- Vehicle identification.
- Registration and VIN.
- Purchase price.
- VAT treatment used by the supplier.
- Proof of payment.
If the supplier has used REBU, the invoice should include the wording corresponding to the special scheme for second-hand goods.
3. Buying from Germany, France, Belgium or another EU country
You must first determine whether the foreign supplier has used its own VAT margin scheme or has issued a normal intra-EU supply.
- Supplier invoice.
- EU VAT number where applicable.
- VAT scheme shown on the invoice.
- Complete vehicle details.
- Registration and VIN.
- Purchase price.
- Bank payment evidence.
- Vehicle documents.
- Transport documents where relevant.
If you make normal intra-EU acquisitions, your Spanish VIES/ROI position also needs to be checked. See our information on VIES registration in Spain.
Good practice: create a separate file for every car using the registration number and VIN. This makes it much easier to link the purchase, payment, costs, documents, sales invoice and VAT treatment.
REBU and Spanish Transfer Tax (ITP) are not the same thing
When a professional vehicle dealer buys a used car from a private individual, the purchase may also need to be considered for Spanish Transfer Tax — ITP.
In the Valencia Region there is a provisional exemption for professional vehicle dealers who buy vehicles specifically for resale. To make the exemption final, the dealer must prove that the vehicle was resold within one year.
Therefore, using REBU on the later sale does not mean that Form 620 and the Transfer Tax rules on the purchase can be ignored.
A “used” car can still be treated as new for EU VAT purposes
For intra-EU VAT rules, there is a special definition of a new means of transport.
If either condition is met, a vehicle can still be treated as new for certain EU VAT purposes even though it has already been registered or owned.
What should a REBU sales invoice look like?
Do not show VAT separately
The VAT amount must not appear as a separate charge on a REBU invoice.
VAT is included
The tax is included within the total selling price paid by the customer.
The special scheme must be stated
The invoice must indicate that the special scheme for second-hand goods applies.
A business buying a vehicle under REBU cannot simply calculate 21% of the invoice price and reclaim it. There is no separately charged input VAT amount.
REBU compared with the normal VAT regime
| REBU / VAT margin scheme | Normal VAT regime |
|---|---|
| VAT is calculated from the dealer’s margin. | VAT is calculated using the normal VAT rules. |
| VAT is not shown separately on the invoice. | VAT is normally itemised. |
| The buyer does not receive a separately deductible REBU VAT amount. | A business customer may deduct VAT if the normal requirements are met. |
| The origin and tax treatment of each car must be checked. | Input VAT deductibility depends on the purchase and the general VAT rules. |
The same dealership may have vehicles with different VAT treatments in stock at the same time. Your bookkeeping and invoicing software must be able to keep them separate.
REBU record-keeping
The scheme is not only about calculating VAT differently. Specific records are also required.
When the vehicle comes in
- Description of the vehicle.
- Purchase invoice or document.
- Purchase price.
- Seller or supplier details.
When the vehicle is sold
- Sales invoice.
- Selling price.
- VAT treatment.
- Whether REBU or the normal VAT regime was used.
For cars, we strongly recommend also recording the registration number and VIN.
How long should you keep the paperwork?
There is no single “REBU retention period”. Different Spanish rules apply.
Practical recommendation: keep the complete file for each vehicle for at least six years, and longer whenever another rule or an ongoing tax matter requires it.
Be careful with cash payments
Where one of the parties acts as a business or professional, transactions of €1,000 or more cannot normally be paid in cash, subject to the specific legal exceptions.
For example, a professional dealership buying a €12,000 car from a private seller cannot pay the full price in cash simply because the seller is a private individual.
The limit cannot be avoided by artificially splitting one transaction into several smaller payments.
REBU does not replace vehicle paperwork or consumer rights
Vehicle registration and transfer
Tax treatment and the administrative ownership of the car are separate issues. Transfers and dealer-specific vehicle procedures must also be handled correctly with Spain’s DGT.
Warranty obligations
REBU is a VAT scheme. It does not remove a professional seller’s obligations towards a consumer.
For second-hand goods, seller and consumer may agree a shorter liability period than the general period, but it cannot be shorter than one year.
If you are starting now, think about VeriFactu too
A new dealership should use invoicing software capable of keeping REBU sales separate from transactions under the normal VAT regime.
Under the rules currently published, the formal deadlines remain 1 January 2027 for affected Corporate Income Tax taxpayers and 1 July 2027 for the other affected businesses and professionals. However, Spain’s Ministry of Finance announced in October 2026 its intention to postpone the outstanding VeriFactu obligations until October 2028. The legal amendment is still pending publication.
If you are setting up your systems now, it makes sense to choose software that can adapt to the final Spanish invoicing timetable.
What happens if you stop trading?
Form 036
If you stop all business activities, the relevant tax deregistration must be filed.
If you stop only the used-car activity but keep another business activity, you would normally amend your tax registration rather than close it completely.
Spanish Social Security
If an autónomo stops the activity completely, the Social Security deregistration must also be filed within the applicable deadline.
Closing the activity does not remove previous tax obligations or the duty to keep your records.
Mistakes that can cause problems for a used-car dealer
Using REBU for every used car
A second-hand vehicle does not automatically qualify for the margin scheme.
Poor purchase paperwork
This is particularly risky when buying cars from private individuals.
Showing VAT separately
A REBU invoice must not show a separate VAT amount.
Mixing all vehicles together
Each unit should have its own clearly identified tax treatment.
Not checking EU supplier invoices
A margin-scheme purchase and a normal intra-EU acquisition are not the same.
Waiting until the car is sold
The VAT treatment should be reviewed when the vehicle enters stock.
Starting a used-car business in Spain?
We can organise the tax registration, REBU treatment, paperwork, VAT, Spanish or EU purchases, invoicing and accounting from the beginning.
REBU and used-car dealers in Orihuela Costa, Torrevieja and Alicante
A professional dealer may buy cars from Spanish private sellers, Spanish businesses and suppliers in Germany, France, Belgium, the Netherlands or elsewhere in the European Union.
Two apparently identical cars can have completely different VAT treatments.
At Asesoría Orihuela Costa we work in English with self-employed clients and companies in Orihuela Costa, Torrevieja, Pilar de la Horadada, San Miguel de Salinas, Guardamar del Segura and other areas of Alicante and Murcia.
If you are starting personally, see our self-employed and entrepreneur services. If you operate through a company, we can coordinate REBU with our company tax advice and accounting services.
REBU and used cars in Spain: FAQs
How do I register for REBU in Spain?
There is no separate REBU register. Your business activity must be correctly registered, normally through Form 036, and the margin scheme is then applied only to transactions that meet the legal requirements.
Can every second-hand car be sold under REBU?
No. You need to check who sold the vehicle to the dealer and how that purchase was treated for VAT.
Is REBU calculated car by car?
For a normal used-car dealership, generally yes. The margin is normally calculated for each individual vehicle.
Is there a car-price limit for using the individual margin?
No. There is no general price threshold that determines whether a vehicle uses the individual or global margin method.
What paperwork do I need when buying from a private seller?
The dealer must prepare the appropriate purchase document and obtain the seller’s signature. The seller, buyer, date, price, vehicle registration and VIN should be clearly identified.
Do I also need to consider Form 620?
Yes. REBU and Transfer Tax are different matters. In the Valencia Region, professional vehicle resellers may qualify for a provisional exemption on purchases made for resale, subject to the legal conditions and resale within the required period.
Can VAT be shown separately on a REBU invoice?
No. VAT is not shown separately and the invoice must state that the special scheme for second-hand goods applies.
Do I need VIES/ROI to buy cars in Germany?
It depends on how the German supplier invoices the transaction. A vehicle sold under the supplier’s margin scheme is different from a normal intra-EU acquisition.
How long should I keep the documents?
Different periods apply. The general Spanish tax limitation period is four years, some payment evidence must be kept for five years, and Spanish commercial law generally requires business documentation to be retained for six years. Keeping the complete vehicle file for at least six years is a sensible practical approach, unless a longer period applies.
Can a dealer pay cash when buying a car from a private person?
The Spanish cash-payment restriction applies when one party acts as a business or professional, even if the seller is a private individual.
Need help setting up your used-car business in Spain?
We can review your registration, REBU, VAT, paperwork, bookkeeping and invoicing so the activity is organised correctly from the first purchase.
Last regulatory review: 24 October 2026. This guide is based on current Spanish VAT, invoicing, tax, commercial and transfer-tax rules. The correct VAT treatment of each vehicle depends on its origin, documentation and the circumstances of the transaction.