IUC in 2024: what it is, when it is paid, and what changes.
Do you have a car? Find out why you need to pay Vehicle Tax, what the amount is, and what changes this year compared to this tax.
If you are now in the process of searching and buying your car, the credit intermediaries of Poupança no Minuto can help you with your car loan: contact us and find out more!
What is the Single Circulation Tax (IUC) levied on automobiles?
The Single Circulation Tax (IUC) is imposed on all owners of light and heavy vehicles, passengers and goods, motorcycles, pleasure boats or aircraft, whether new, second hand, or imported.
The amount is paid annually and recently underwent an increase in all categories with the State Budget of 2024.
The purpose of this taxation is to compensate for the environmental costs and wear that roads suffer from driving vehicles. That is why the tax calculation is done based on the vehicle's engine displacement and respective carbon dioxide emissions.
Note that for vehicles with registration plates before July 2007, the tax to pay is lower for diesel vehicles.
In the case of imported cars, if they were purchased in a country of the European Union, Norway, Liechtenstein, or Iceland, the date considered for calculating the Vehicle Tax (IUC) is the date of first registration and not the date of import. However, if they were purchased in other countries, the date counted is the date of import.
What vehicles are exempt from paying the IUC tax?
Vehicles exempt from the IUC charge include all 100% electric cars, agricultural tractors, ambulances and vehicles for transporting patients, fire trucks, State vehicles, taxis, and vehicles for people with a disability equal to or greater than 60%.
When is the vehicle tax paid?
The IUC must be paid in the first year of registration of each vehicle, with a period of 30 days after the legal deadline for registration (if purchased first-hand from a car dealership, the IUC is paid at the time of purchase).
After that, you have to pay the annual IUC, having the entire month of vehicle registration to do it. If it is a recreational boat or aircraft, however, you must pay in January.
How to pay the IUC?
The payment of the IUC is made through the document provided by the Tax Authority, on the online portal or in person. It indicates the amount you have to pay according to the vehicle in your name, and the payment details.
To do this, you can access the Finance portal online and take the following path: All services - IUC - Submit current year - Search - Click on the license plate - Print - Print for payment and Print Document.
You can proceed with the payment through MBWay or using references for Multibanco payments, homebanking, or mail.
But you can also schedule an appointment at a Finance counter and, through the Single Automobile Document or property registration and logbook, make the payment directly at the counter; or at a Citizen's Space, also having to bring your identification documents, in addition to vehicle documents.
What are the changes to Vehicle Tax for 2024?
With the State Budget for 2024, there was a general increase in the Vehicle Tax planned, with a particular focus on a larger increase for vehicles registered between 1981 and 2007 and category E vehicles registered after 1992: a measure that ultimately did not move forward.
Still, the overall increase in the values of IUC advanced in all categories. For gasoline vehicles, the increase was about 3% and for diesel vehicles, it was about 2.5%, comparing with the values of 2023.
If the vehicle is diesel, you must also pay an additional IUC tax for vehicles in category A and B - these values remain the same as in 2023. Check all the rates in the IUC Code.
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