How to recover the IVTM Vehicle Circulation Tax if you scrap your car

Not long ago we saw in an article how to check whether a car has been scrapped. It is important information, because it not only guarantees that the vehicle has been scrapped and that we can rest easy regarding its use once it is out of our control, but it also certifies that we do not have to pay the Vehicle Circulation Tax. However, this tax that regulates the use of vehicles on public roads, which is compulsory, is paid once a year. So it may happen that it was paid shortly before the vehicle was scrapped. But don’t worry, because the legislation allows you to recover the portion of this tax that was not used.

What is the Vehicle Circulation Tax

The Vehicle Circulation Tax is a levy imposed by each town council, paid once a year, and it applies to vehicles registered in the Register of the Directorate-General for Traffic. This tax must be paid regardless of whether the car is active or not, so all registered vehicles must comply with this requirement.

But although the payment is made only once and covers the whole current year, it is calculated by quarters, so it is possible to recover part of the tax paid annually by applying to the corresponding town council. In this way, if the vehicle is scrapped during the second quarter of the year, for example, you can request a refund of the amount corresponding to the last two quarters.

However, to do so it is necessary that the scrapping takes place before the first day of the quarter whose amount you wish to recover. If the scrapping is processed, for example, on 1 June, the third quarter is already considered used and will not be included in that tax refund. It is therefore best to plan the vehicle’s scrapping carefully and to do it before the end of the current quarter. Note that if the scrapping takes place from 1 October onwards, there will no longer be any possibility of receiving this refund.

What is needed to get the Vehicle Circulation Tax refunded?

To be able to recover the corresponding part of the unused Vehicle Circulation Tax it is necessary to notify the town council of the vehicle’s scrapping. To do this you need two documents that are generated after the vehicle is deposited at an Authorised Vehicle Treatment Centre (CATv), in other words, the scrapyard. These two documents are:

• Vehicle Destruction Certificate.
• Proof of definitive deregistration from the DGT.

Several town councils offer the possibility of applying for this refund online, while others merely provide the document needed to apply on their website. It is important to know how to do it, and the steps to follow in each case are usually on the town council’s website. With these procedures, you can recover the part of the Vehicle Circulation Tax that was not used for the current year.