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Generic Tax Name Motor vehicles tax
Tax name in the national language Imposto sobre veículos - ISV
Tax name in English Tax on motor vehicles
Member State PT-Portugal
Tax in force since 2007/07/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

ISV Code, enacted by Law 22-A/2007 of 29 June, as amended. Decree Law 33/2007 of 15 February (incentivo fiscal a destruiçao de automóveis ligeiros em fim de vida). Decree-Law 29/2010 of 26 April. Law 3-B/2010 of 28 April. Law 55-A/2010 of 31 December; Law 64-B/2011 of 30 December; Law 82-D/2014 of 31 December.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments
 
Geographical Scope

Whole country.

 
Taxpayers

Registered traders, recognized traders and non traders (persons who do not carry out a business activity) who release taxable vehicles for consumption.

 
Tax object and basis of assessment

Manufacture, assembly, importation or admission from another EU Member Sate of the following motor vehicles:

  • Light passenger vehicles
  • Light goods vehicles
  • Light mixed vehicles (designed to carry passengers and goods)
  • Heavy passenger vehicles (the gross weight of which exceeds 3,500 kg) designed to carry up to nine passengers, including the driver
  • Motor caravans
  • Motorcycles (and similar motor vehicles with three or four wheels).

 

Specific components of the tax are assessed according to the cylinder volume of the engine, the level of CO2 emissions and particulate emissions.

 
Deductions, Allowances, Credits, Exemptions

Exemptions

  • Vehicles without engine
  • Vehicles exclusively powered with electricity or a renewable energy (other than a fuel)
  • Ambulances
  • Fire fighting vehicles purchased by firemen organizations
  • New vehicles purchased for the armed forces or security forces
  • Vehicles lost or abandoned in favour of the central government or purchased by the national agency for government purchases (Agência Nacional de Compras Públicas, E.P.E)
  • Motor vehicles designed to carry at least nine passengers, including the driver, purchased by local authorities (municipalities) for the transport of schoolchildren
  • New light passenger vehicles designed to carry nine passengers, including the driver, purchased by charities, under the conditions established by the law
  • Disabled individuals (including members of the Armed Forces) under the conditions established by the law
  • Political parties
  • Vehicles owned by adults holding a driving licence who transfer their residence from another EU Member State or from a Third Country to Portugal, under the conditions established by the law
  • Vehicles owned by EU nationals, who have worked or exercised a professional activity abroad (i.e. international cooperation, teaching, working for international organizations or for diplomatic missions or consular posts) for at least 24 months and who have been effectively taxed in Portugal, under the conditions established by the law
  • Members of diplomatic missions or consular posts who return to Portugal, subject to the conditions laid down by the law
  • EC Officials and Members of the European Parliament, under the conditions established by the law

 

Abatements

  • The tax levied on motor vehicles previously registered in another EU Member State is provisionally assessed according to the average depreciation in the domestic market, taking into account the brand and model, fuel used, kilometres driven, mechanic and maintenance condition, as shown by indicators published by specialised reference magazines. The tax is reduced according to the table below. However, the taxpayer may request a final evaluation based on the market value of the vehicle.

Time of use

Tax abatement

(%)

From 1 year to 2 years of use

20

From 2 years to 3 years of use

28

From 3 years to 4 years of use

35

From 4 years to 5 years of use

43

Over 5 years of use

52

  • The tax is reduced by 70 % for light passenger and mixed vehicles intended for taxi service, up to 4 years of use, for CO2 emission levels under 160g/km. These vehicles are exempt if fuelled exclusively with LPG or natural gas or electricity, or equipped with a hybrid engine. They are also exempt if they are adapted to carry disabled passengers.
  • The tax is reduced by 40 % for new light passenger and mixed vehicles (not subject already to reduced rates - see below) intended for rent-a-car activity whose certified levels of CO2 emissions do not exceed 120 g/km, under the conditions established by the law.
  • Tax incentive to vehicle abatment of €4,500 if the vehicle introduced in consumption is an electrical vehicle; €3,250 if the vehicle introduced in consumption is a hybrid plug-in vehicle; €1,000 if the vehicle introduced in consumption is an electrical heavy fourwheeler vehicle.
 
Rate(s) Structure
  • Table A

 Passenger vehicles and light mixed vehicles not taxed according to Table B (see below)

 

 ‘Cylinder volume of the engine' component:

 Cylinder volume of the engine

 (cm3)

 Rates per cm3

 (EUR)

 Amount to deduct

 (EUR)

 Up to 1,250

1.00

740.55

 Over 1,250

4.70

 5,362.67

 

 ‘Environmental' component:

 CO2 emissions

 (g/km)

 Rates per g/km

(EUR)

Amount to deduct

(EUR)

Vehicles fuelled either with petrol or with LPG or with natural gas:

 

 

- Up to 115

4.15

390.35

- From 116 to 145

37.91

4,281.66

- From 146 to 175

44.00

5,161.20

- From 176 to 195

111.85

17,047.04

- Over 195

147.69

24,021.60

Vehicles fuelled with diesel:

 

 

- Up to 95

19,97

1,586.51

- From 96 to 120

57.15

5,173.80

- From 121 to 140

126.75

13,642.70

- From 141 to 160

140.96

15,684.40

- Over 160

193.61

24,137.71

 

- The above rates are reduced for the following vehicles:

  • by 50% for two-wheel drive light mixed vehicles designed to carry at least seven passengers including the driver, the gross weight of which exceeds 2,500 kg
  • by 40% for light passenger vehicles fuelled exclusively with LPG or gas 
  • by 60% for light passenger vehicles with hybrid engines (fuelled with electricity or solar energy and petrol or diesel)
  • by 25% for ligh passenger vehicles with hybrid plug-in engines.

- An increase of EUR 500 is applicable to light vehicles fuelled with diesel whose certified levels of particulate emissions are higher than 0.002 g/km; this value can be reduced to €250 for light goods vehicles, designed to carry no more than three people.

 

Table B

Goods vehicles, heavy mixed vehicles and light mixed vehicles referred to below

 

Cylinder volume of the engine

(cm3)

Rates per cm3

(EUR)

Amount to deduct

(EUR)

Up to 1,250

4.47

2,883.65

Over 1,250

10.57

10,506.16

 

- The above rates are reduced by 5% for the following vehicles:

  • For vehicles prior to 1970, previously registered in another EU Member State (art. 8, n.º 2);

- The above rates are reduced by 50% for four-wheel drive light goods vehicles, designed to carry no more than three passengers, including the driver, with an open laden compartment ( art. 8, n.º 2);

- The above rates are reduced by 85% for the following vehicles (art. 9):

  • Two-wheel drive light mixed vehicles the gross weight of which exceeds 2,300 kg, with laden compartment whose minimum inside length is 145 cm and whose minimum inside height is 130 cm ( measured from its platform that must be continuous), with a fixed screen (that must be parallel to the rear row of seats and must isolate completely the space intended for the driver and the passengers from the space intended for goods).
  • Two-wheel drive light goods vehicles with open laden compartment or without laden compartment, designed to carry more than three passengers, including the driver;

- The above rates are reduced by 70% for the following vehicles

  • Motor caravans.

- The above rates are reduced by 90% for the following vehicles

  • light goods vehicles with open laden compartment designed to carry no more than three passengers including the driver. 

Table C

Motorcycles (and similar vehicles with tree or four wheels)

 

Cylinder volume of the engine

(cm3)

Rates per cm3

(EUR)

From 120 to 250

62

From 251 to 350 

77

From 351 to 500 

103

From 501 to 750 

155

Over 750

206

 
Tax due date

In the 10th day following the assessment (in general the tax assessement is issued in the same day in which the taxpayer asks authorization for release for consumption)

 
Tax collector

Tax and Customs Authority (AT).

 
Special features
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d214da

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 370.22 EUR 0.22
2011 643.72 EUR 0.36
2010 831.83 EUR 0.46
2009 714.35 EUR 0.41
2008 945.62 EUR 0.53
2007 1,220.66 EUR 0.70
2006 1,205.14 EUR 0.72
2005 1,211.94 EUR 0.76
2004 1,152.97 EUR 0.76
2003 1,013.69 EUR 0.69
2002 1,186.16 EUR 0.83
2001 1,226.02 EUR 0.90
2000 1,239.19 EUR 0.96

Comments