How to Pay Road Tax?

When driving a car, you must bear in mind the General Vehicle Regulations, and the Traffic Laws, paying attention to taxes such as the Road Tax, which is also known as the Tax on Mechanical Traction Vehicles.

This is a mandatory payment rate for drivers who own a registered vehicle, and must pay it while using it.

This is a tax whose amount varies depending on the locality; and the differences between one and the other can become very remarkable. For this reason, there are those who choose to “register” their vehicles in some locations that allow them to pay less. In addition, there are other reasons to pay less in this tax, and we are going to explain how to pay the road tax.

What is road tax

You have to be able to distinguish between road tax and registration tax. When a new vehicle is purchased, both taxes must be paid; and the difference between the two is that while the first is paid annually while the vehicle is registered, the registration tax is paid only when requesting a new registration.

The circulation tax is a mandatory tax so that the owner of a car can use it legally, whether it is a natural or legal person. The data on the ownership of the vehicle, and therefore, who must make that payment, is found in the car’s registration certificate.

If a second-hand vehicle is purchased, the person selling it will have to provide a receipt for the payment of this tax; and once the change of ownership is confirmed, it will be the new owner who will have to face this tax from the following year.

The municipalities of each locality are in charge of collecting the circulation tax. The amount of the payment depends on the city or locality, being able to find great differences between cities.

Keep in mind that electric cars are not exempt from paying this tax, although if they are electric or hybrid, they have discounts in many cities.

Vehicles exempt from paying road tax

Due to their characteristics and use, there are some vehicles that are exempt from paying this tax, as is the case of the following:

  • Public passenger transport, such as vehicles with more than nine terms, such as urban buses or trams.
  • Agricultural vehicles, including tractors, trailers, harvesters, and other specialty vehicles.
  • Historic vehicles such as collector or classic cars.
  • Cars from driving schools or taxis from rental services.
  • Ambulances and other surveillance and assistance vehicles
  • Vehicles for industrial or scientific use that have the approval of the Tax Administration.
  • Official cars for military use or those of the State Security bodies.
  • Cars that have diplomatic registration.
  • Special vehicles for people with reduced mobility, and both special ones and those adopted for this use are included.

Instructions for paying road tax

If you want to know how to pay the road tax you should take into account, the steps and options you have for it. You do not want to suffer the fact of having to face the consequences of not paying it, since they could even seize the vehicle or goods, in the event that the amount exceeds 500 euros.

In addition, the car cannot be sold if the Road Tax has not been paid before, since this proof is necessary to be able to make the change of ownership. The payment of this fee must be made in the municipality in which the holder is registered. There are several possibilities to face the payment of the circulation tax:

  • In person: It is possible to go to the corresponding municipal offices for this purpose.
  • Direct debit: The holder’s bank account can be provided so that the payment can be made automatically.
  • At the bank: You can make the payment of the circulation tax at the cashiers or banks, following the information detailed on the receipt.
  • Internet: Via telematics, you can deal with the payment of the circulation tax, for which you must go to the online office, specifically in the section dedicated to taxes.

Once the payment is made you will have to make sure that it has been made correctly. To do this, you must request an official report from the General Directorate of Traffic (DGT). This report allows you to know the history of a vehicle, knowing its maintenance, ownership, history and technical data. To do this, you only need the car’s registration number and you can request it by filling out an online form from the DGT.