2025 Tax Guide for Dealers: Deductions, VAT, and Key Tips
13 Nov 2025
Used car dealerships in Spain, especially those of medium size (with around 40 vehicles in stock, 2 employees, and about 1 million euros in revenue), face a series of tax obligations each year. With the arrival of 2025, it is crucial to know the current regulations to avoid penalties, optimize taxes, and improve business profitability.
This practical guide summarizes the essential tax aspects: VAT, common deductions, types of taxes that affect your dealership, and useful tips for keeping accounts up to date.
Basic tax obligations for dealers
1. Registration in the IAE (Tax on Economic Activities)
Every dealer must be registered under the corresponding heading of the IAE. The activity is usually registered under code 615.5 (used vehicle trade). Dealers with revenue below 1M € are exempt from paying this tax, although they must declare it.
2. Mandatory accounting books
Keeping up-to-date records of issued and received invoices, an investment goods ledger, and a ledger of intracommunity operations is essential, especially if purchases are made outside Spain or within the EU.
3. Periodic declarations
VAT (Model 303): Quarterly.
Annual VAT summary (Model 390).
IRPF withholdings (Model 111 and 190) if there are employees.
Corporate Tax (Model 200) for limited companies.
Transactions with third parties (Model 347) if exceeding 3,005.06 € annually with the same supplier or customer.
The VAT in used car dealerships
General regime or special regime for used goods (REBU)?
One of the most delicate aspects is knowing when to apply the special REBU regime, which allows taxation only on the profit margin and not on the total operation.
Applicable when:
The vehicle has been acquired from an individual or from a company that did not deduct VAT.
Not applicable when:
The vehicle is purchased from a company that did deduct VAT. In that case, the general VAT regime (21%) applies.
Practical example:
A dealer buys a car from an individual for 5,000 € and sells it for 6,500 €:
With REBU: VAT is calculated only on the margin (1,500 €), that is, 21% of 1,500 € = 315 €.
With general regime: 21% is calculated on the total (6,500 €), that is, 1,365 €, but the VAT paid can be deducted if it exists.
Practical tips:
Always document the origin of the vehicle.
Clearly differentiate in your accounting which vehicles go by REBU and which by general VAT.
Use accounting software adapted to dealerships.
Common tax deductions
1. Deductible expenses
Purchase of vehicles for stock (depending on the type of supplier and tax regime).
Advertising and marketing.
Repairs and pre-sale inspections.
Salaries and Social Security.
Rent of the premises, supplies, and general business expenses.
2. Depreciation
You can depreciate the value of installations, tools, and computer equipment necessary for the dealership's activity.
Quarterly and annual tax checklist
Quarterly:
Review sales and purchases of the quarter.
Classify REBU operations vs general regime.
Prepare and submit model 303.
Review deductible expenses and receipts.
Consult with a tax advisor if there were any unusual operations.
Annual:
Submit models 390, 190, 200, and 347 as applicable.
Review depreciations and adjust accounting.
Assess changes in the taxation regime if applicable.
Plan investments or purchases before the fiscal close.
Common tax errors in dealerships
Not correctly differentiating REBU operations.
Issuing incorrect or incomplete invoices.
Forgetting to submit models such as 347.
Not keeping receipts for vehicle purchases.
Not planning depreciation or fiscal closure.
Avoiding these mistakes can make the difference between healthy accounting and an inspection with penalties.
Recommended tax management software
Some useful tools for dealerships that want to keep everything in order:
Contasol: free, with REBU VAT module.
Autosoft: specialized in dealerships, integrates stock management and invoicing.
Sage 50 / A3ERP: for dealerships with higher volume.
Key tips to optimize your taxation in 2025
Conduct quarterly tax reviews with your advisor to correct deviations on time.
Use digital tools to automate invoicing and separate REBU operations from general ones.
Have a clear purchasing policy: knowing the tax regime of the supplier avoids errors in VAT.
Plan the annual fiscal closure in advance to optimize deductions and depreciations.
Don’t wait for the Tax Agency to review your accounting. Anticipate possible errors.
Frequently Asked Questions (FAQs)
Can I apply the REBU if I buy the car at an auction?
It depends on whether the supplier invoices you with deductible VAT. If there is no deductible VAT, you can apply the REBU.
Is it mandatory to submit model 347 if I sell to individuals?
No, model 347 only applies if you have operations exceeding 3,005 € with other professionals or companies.
What happens if I mix REBU and normal vehicles on the same invoice?
It is not allowed. You must issue separate invoices.
What should I do if I bought a vehicle from a foreign company?
In that case, the reverse charge mechanism (model 349) can be applied, and you must review whether you can apply REBU or the general regime.
Conclusion
Complying with tax obligations not only avoids problems with the Tax Agency but also improves the financial health of the dealership. With good organization and advice, it is possible to optimize the taxation of the business even in a changing environment like that of 2025.
For medium-sized used car dealers, such as those operating with 40 cars and 2 employees, this guide is a solid foundation for proactively and profitably reviewing and adjusting their tax management. It is not just about compliance but about taking advantage of all the available tools to grow your business.
