# VAT on an imported car (2026): when it is zero, when it is 23% and on what amount

Source: TugaCarro (https://tugacarro.com/en/iva-carro-importado/). Updated: 2026-11-14. ISV calculator: https://tugacarro.com/en/simulador-isv/

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.

> General information, not legal or tax advice. Amounts are estimates. Always confirm with the Autoridade Tributária e Aduaneira (AT) and the IMT (Instituto da Mobilidade e dos Transportes) before you buy.

## 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](https://tugacarro.com/en/importar-carro-fora-da-ue/).

## 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](https://tugacarro.com/en/simulador-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](https://tugacarro.com/en/legalizar-carro-importado/) and the sum in [is importing worth it?](https://tugacarro.com/en/compensa-importar-carro/).

## 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.

## Read next

- [Register an imported car](https://tugacarro.com/en/legalizar-carro-importado/)
- [ISV calculator](https://tugacarro.com/en/simulador-isv/)
- [Import a car from outside the EU](https://tugacarro.com/en/importar-carro-fora-da-ue/)
- [Is importing worth it?](https://tugacarro.com/en/compensa-importar-carro/)
- [Import a car from Germany](https://tugacarro.com/en/importar-carro-alemanha/)

## Tools

- ISV calculator with "outside the EU" mode: https://tugacarro.com/en/simulador-isv/
- TugaCarro bot on Telegram: https://t.me/TugaCarroBot