Model 621 is the declaration before the Administration that the citizen has to make, in Spain, to declare a sale of a second-hand means of transport and pay the tax on property transfer and documented legal act that is generated.
The taxpayer who acquires a second-hand means of transport, vehicle or vessel must declare this purchase before the Treasury. This is done using model 621.
The purchase of a second-hand vehicle is exempt from consumption tax (VAT), but there is a transfer of assets and this fact is what is subject to tax.
The sellers of these cars do not have to declare the model 621, but they will have to declare this capital gain in their Income Tax.
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Model 621 Features
The essential characteristics of this tax declared in form 621 are:
- The tax levied on this commercial transaction is the onerous property transfer tax. Second-hand transport is not subject to VAT, as is the purchase of a new vehicle, for example.
- In Spain, it is a tax that is regulated by each autonomous community.
- This model can be submitted electronically or in person.
- It must be accompanied by the sales contract, the technical file of the vehicle, the circulation permit and the extract that shows the payment of the tax.
- It is important to know that the person selling the vehicle is an individual. In the case of buying a second-hand vehicle from a dealer, for example, you do not have to fill in this form.
- The use that is going to be given to the vehicle by the buyer is indifferent, that is, both the person who buys the vehicle for their work and for private use will be subject to the payment of this tax.
- The tax rate is levied on the value for which the vehicle was purchased and depends on each administration. It can go from 4% to 8%.
- There is a period to present this model that if not complied with could have consequences such as sanctions.
Property transfer tax
Model 621 finally taxes this taxable event, the onerous transfer of assets between individuals, but what does it consist of?
The tax is levied on property traffic between individuals, that is, with a civil and non-commercial nature. It taxes legal businesses that consist of an exchange of assets between individuals such as the sale or lease, for example.
Mercantile sales, between companies and individuals, are transactions subject to consumption tax (VAT), on the other hand, civil sales, between individuals, are subject to this other tax.
For this reason, the sale to an individual of a second-hand vehicle must be declared and the relevant tax paid and this is done through form 621.