What is the Special Regime for Used Goods? (REBU)
Content:
The Special Regime for Used Goods (REBU) is a tax tool that seeks to avoid double taxation in the purchase and sale of used goods. Regulated by Article 135 and the VAT Law, this regime allows resellers to pay taxes only on the profit margin, rather than applying VAT to the full resale price.
Why is this regime important?
Because by using it you avoid double VAT taxation on the same good.
For example:
Suppose we have three people:
- A car dealer who does this as a profession, registered as a REBU with the Treasury under 036.
- A private individual who sells his car that he bought new some time ago
- Manolo, who is a person who buys the car from the dealer
The car dealer buys the car from the individual for 10,000 euros.
The individual purchased this vehicle new for €30,000, paying the corresponding VAT of 21% (€6,300). Since the individual is an individual, not a company or self-employed person, the VAT cannot be deducted.
The dealer wants to sell this car, which he just purchased for €10,000, for €15,000. If he applies VAT to the entire price, we would be talking about double taxation on the same item, because all the VAT was already paid when the individual bought it new, and it will be paid again when Manolo buys it from the dealer.
The REBU corrects this situation by only levying VAT on the profit margin, not on the total price. In the previous example, the margin would be €5,000 (€15,000 - €10,000). The dealer would have to apply VAT on those €5,000 instead of the full €15,000. This means that when Manolo buys the car, instead of paying €3,150 in VAT, he'll only pay €1,050.
Requirements to Apply for the Special Regime
Not all assets and transactions qualify for this regime. For it to apply, the following conditions must be met:
1. Types of Goods:
Used goods.
Works of art.
Antiques and collectibles. According to Article 136, these definitions must be interpreted strictly.
2. Authorized Resellers:
- Only businesses that regularly engage in the purchase and sale of this type of goods can apply the regime.
3. Conditions of acquisition:
- The goods must have been acquired in specific situations, such as purchases from end consumers or other resellers under this regime.
What is Considered a Used Good?
According to article 136.one.1 of the VAT Law, to be considered properly used, these requirements must be met:
Be movable property. Real estate is excluded.
Have a previous use and be capable of being reused for its original purpose.
Do not include recovered materials, containers, packaging, precious metals or refurbished goods that exceed their purchase price.
Keys to the Special Regime
The core of the regime is that VAT is applied only to the commercial margin of the operation, that is:
Margin = Selling price - Buying price.
Other important aspects:
Documentation:
Purchases from individuals must be justified by a signed receipt.
Waiver of the special regime:
It is possible to opt for the general regime. In this case, VAT will be applied to the total sale price, allowing the buyer to deduct it.
Intra-Community operations:
Purchases from other EU countries may have specific characteristics. It is essential to ensure that the documentation correctly reflects the applicable regime to avoid tax problems.
Conclusion
The Special Regime for Used Goods (REBU) is an effective solution for avoiding double taxation in the sale of secondhand goods. However, its proper application requires compliance with strict legal and documentary requirements.
If you found this information helpful, be sure to check out our other blog articles, which delve deeper into other key aspects of Spanish accounting and taxation.
Do you have any questions?
We're here to help. If you need advice on how to apply this regime to your business , contact us or send us a WhatsApp message , and we'll address your case individually.