VAT on an imported car (2026): when it is zero, when it is 23% and on what amount
VAT is the tax that surprises importers most: on a used EU car there is usually none, on a nearly new car it is 23% of the price, and from outside the EU it stacks up. Here is the rule in each case.
Short answer
A used car from another EU country that is over 6 months old and has over 6 000 km pays no VAT in Portugal: the tax stayed in the country of origin. If it is 6 months old or less, or has 6 000 km or less, it is a "new means of transport" and pays 23% VAT in Portugal. A car from outside the EU always pays VAT, on the customs value plus duty plus ISV.
The three cases
| Case | VAT in Portugal | Basis |
|---|---|---|
| Used car from the EU, over 6 months and over 6 000 km | None | — |
| Car from the EU, 6 months or less, or 6 000 km or less | 23% (mainland) | Purchase price without foreign VAT |
| Car from outside the EU (used or new) | 23% mainland, 22% Madeira, 16% Azores | Customs value + duty + ISV |
| Moving residence with the exemption | None (conditions met) | — |
Legal basis: Directive 2006/112/EC art. 2 (definition of a new means of transport); the Portuguese regime for intra-EU VAT transactions for the acquisition in Portugal.
Worked examples
| Car | VAT payable in Portugal |
|---|---|
| 2019 VW Golf 2.0 TDI bought in Germany | 0 € |
| Car 4 months old with 3 000 km bought in the EU for 30 000 € without VAT | 6 900 € |
| 2019 VW Golf 2.0 TDI from the UK, customs value 16 200 € | 5 257 € (23% on 16 200 € + 1 620 € duty + 5 037 € ISV) |
Worked examples. The car from outside the EU also pays ISV as new and duty; see importing from outside the EU.
We tell you whether your car pays VAT
Nearly new car: the case that fools people
A car a few months old looks like a bargain abroad, but for VAT it counts as new. The seller should then invoice without the origin country's VAT, and the 23% VAT is paid in Portugal. Pay VAT there and here, and you pay twice. Check the first registration date and the mileage before paying a deposit.
On a new car the ISV also has little or no age reduction: add both before comparing with the Portuguese price. Calculate the ISV
Companies and deductible VAT
For a company, VAT on passenger cars is usually not deductible; there are exceptions for electric cars and some plug-in hybrids, within price limits (Portuguese VAT Code art. 21). Purchases between companies in different countries also change how VAT flows. Check your case with your accountant before buying.
VAT mistakes
- Thinking "used cars pay no VAT" for a car from outside the EU: it always pays.
- Buying a car 6 months old or less, or with 6 000 km or less, counting on the price with foreign VAT.
- Paying VAT in the origin country on a car that counts as new: the VAT is due in Portugal.
- Forgetting that outside the EU the VAT also applies to duty and ISV.
See the full process in registering an imported car and the sum in is importing worth it?.
We tell you whether your car pays VAT
What we do for you
Before the deposit we tell you whether the car pays VAT in Portugal, work out ISV, VAT and the on-the-road cost, and handle the registration.
Frequently asked questions
Does a used car imported from the EU pay VAT in Portugal?
No, if it is over 6 months old and has over 6 000 km.
If it fails either condition, it counts as a new means of transport and pays 23% in Portugal.
Does a car from outside the EU pay VAT?
Yes, always, used or new: 23% on the mainland (22% Madeira, 16% Azores) on the customs value plus duty plus ISV.
The exception is moving residence with the exemption.
I bought a 4-month-old car in Germany. Where do I pay VAT?
In Portugal, 23%, because it counts as new.
The seller should invoice without German VAT. On a 30 000 € car without VAT, that is 6 900 €.
Does VAT count towards the ISV?
For a car from outside the EU it is the other way round: VAT applies to the customs value, duty and ISV.
For an EU car the ISV does not depend on the price.
Can a company deduct the VAT on an imported car?
Usually not for passenger cars; there are exceptions for electric cars and some plug-ins within price limits (Portuguese VAT Code art. 21).
Check with your accountant.
Do I pay VAT when bringing my own car as I move to Portugal?
No, if you meet the conditions of the transfer-of-residence exemption.
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We tell you whether your car pays VAT
With an outside-the-EU mode for duty and VAT.