Unpaid Car Tax: Can I Sell the Vehicle?

Can You Sell a Vehicle with Unpaid Car Tax?

One question that may arise when selling a vehicle is whether it has any unpaid car tax.
This is not only important for the seller, but also for the buyer to understand any pending issues that may affect the vehicle.

Understanding Car Tax

Car tax is an annual fee that must be paid by the end of the month following the vehicle’s registration.
There is usually a grace period for paying the car tax, but if it remains unpaid, there are consequences to consider.

Impact of Unpaid Car Tax

While the non-payment of car tax does not immediately affect the vehicle’s circulation, it could lead to administrative retention due to non-payment of the tax.
However, it usually takes considerable time before unpaid car tax results in administrative measures.

Selling a Vehicle with Unpaid Car Tax

When transferring ownership of a vehicle during a sale, various entities like notaries, Motorization Offices, ACI, or authorized car dealerships can facilitate the process.
Interestingly, there is typically no investigation into the car tax payments, and proof of payment is not required for the sale to proceed.

Any outstanding car tax obligations remain with the seller until the ownership transfer, after which the new owner assumes responsibility.
This transfer of ownership acts as a clear delineation for past due taxes, protecting the buyer from any previous liabilities.

Unpaid Car Tax on Sold Vehicles

Any unpaid car tax remains the obligation of the previous owner, not the buyer.
The vehicle’s ownership transfer through the PRA communicates the change to the relevant authorities, ensuring that any unpaid taxes are tied to the correct owner.

Impact of Car Tax Deadline on Buyers

Buyers must be cautious of the car tax deadline, especially if the transfer occurs during the grace period.
In such cases, if the seller hasn’t paid the tax, it becomes the buyer’s responsibility as the deadline hasn’t expired yet.