IUC - How much your Car pays?
The Single Circulation Tax (IUC) must be paid annually, except for exceptions provided for in this tax code. In this article, you are going to learn how IUC is calculated and what to do to pay without fines.
The IUC aims to restrict vehicle owners for the environmental and road costs they cause when driving. Therefore, in most cases, the amount to be paid depends on the engine capacity, CO2 emissions, type of fuel, and age of the vehicle.
In addition to automobiles, motorcycles, mopeds, tricycles, and quadricycles, as well as recreational boats and aircraft for private use, are also subject to payment of the IUC.
How is the IUC of a car calculated?
The IUC is calculated by adding the tax rates applicable to the vehicle category in question. In the case of category B vehicles, it is still necessary to apply a coefficient referring to the year of registration.
IUC categories for automobiles
Category A
Light passenger and mixed-use vehicles with a gross weight of up to 2,500 kg, registered for the first time in Portugal or in another European Union or European Economic Area country since 1981 and until the date of entry into force of the IUC Code (2007).
Category B
Light passenger cars, mixed-use, and goods, as well as passenger cars weighing more than 3500 kg and with a capacity of not more than nine seats (including the driver's) and mixed-use light cars with a gross weight not exceeding 2500 kg, registered for the first time in Portugal or in another country of the European Union or the European Economic Area after the entry into force of the IUC Code (2007).
Category C
Goods and mixed-use vehicles with a gross weight of more than 2 500 kg, are intended for the private transport of goods, transport on their own account, or rental without a driver for these purposes.
Category D
Goods and mixed-use vehicles with a gross weight of more than 2 500 kg, intended for the public transport of goods, transport for hire or reward, or rental without a driver for these purposes.
Examples
To exemplify how the IUC accounts are made, we present two cases of category B cars.
The first step is to check the rates and coefficients applicable to category B vehicles. This information is contained in article 10 of the IUC Code and article 216 of Law 82-B/2014.
Displacement rates and C02 emissions
Cylinder Echelon
fees
CO2 step
(grams per kilometer)
fees
NEDC WLTP
up to 1 250 29.68 up to 120 up to 140 60.88
More than 1 250 to 1 750 59.56 More than 120 to 180 More than 140 to 205 91.23
More than 1 750 to 2 500 119 More than 180 up to 250 More than 205 to 260 198.14
More than 2 500 407.26 more than 250 more than 260 339.43
Values for 2022 (from July)
Additional fees for CO2 emissions
CO2 step
(grams per kilometer)
Fees
(Euros)
NEDC WLTP
More than 180 up to 250 More than 205 to 260 29.68
more than 250 more than 260 59.56
Note: This table only applies to cars registered after January 1, 2017.
Values for 2022 (from July)
Coefficients
Year Coefficient
2007 1.00
2008 1.05
2009 1.10
2010 and following 1.15
Values for 2022 (from July)
Additional diesel fees
Displacement (cubic centimeters)
Additional fee
(euros)
up to 1,250 5.02
More than 1250 up to 1750 10.07
More than 1,750 up to 2,500 20.12
More than 2,500 68.85
Values for 2022
The next step is to add the applicable fees and then multiply the result by the coefficient for the year of enrollment.
Finally, if the engine is diesel, it is still necessary to add the respective additional fee.
car 1
Category B | 2014 enrollment | Displacement of 988 cm3 | Gasoline | CO2 emissions of 110 g/km (NEDC test)
Cylinder rate = 29.68 euros
CO2 emissions rate = 60.88 euros
Coefficient of the year of first registration: 1.15
Amount of IUC payable = (29.68 euros + 60.88 euros) x 1.15 = 104.14 euros
Take note
The CO2 surcharge (registration is before January 1, 2017) and the diesel surcharge (this is a gasoline car) do not apply.
car 2
Category B | 2019 Enrollment | Engine capacity 1 968 cm3 | diesel | CO2 emissions of 125 g/km (WLTP test)
Cylinder rate: 119 euros
CO2 emission rate: 60.88 euros
Coefficient of the year of registration: 1.15
Additional diesel fee: 20.12 euros
Amount of IUC payable = (119 euros + 60.88 euros) x 1.15 + 20.12 euros = 226.98 euros
Take note
No additional CO2 charge applies (emissions are less than 205 g/km in the WLTP test)
When is the tax paid?
In the year of registration or registration of the vehicle in national territory, the IUC is paid within 30 days after the registration deadline. Afterward, it is paid annually until the last day of the month of the registration anniversary, even if the vehicle is not in use.
Payment of this tax is due until cancellation of registration or registration due to slaughter.
What to do to pay?
To proceed with the payment of the IUC, you must issue the Single Document of Collection (DUC) on the Finance Portal.
Once the DUC has been issued, you can make the payment immediately, on the Finance Portal, by MB Way. If you prefer, you can pay later at Multibanco, home banking, or at the Post Office, indicating the payment reference that appears in the DUC.
If you are unable to issue the DUC, you must pay the IUC at a tax office.
How to issue the DUC?
To issue the IUC, follow these steps:
1. Access the Finance Portal;
2. In the search field, write “IUC”;
3. In the list of search results, click on “Deliver current year”;
4. Authenticate yourself by inserting the Tax Identification Number (NIF) and the respective access password;
5. On the “Deliver IUC” page, mark the search for the category corresponding to the vehicle and click on the “Search” button;
6. In “Consult”, select the vehicle and press the “Send” button.
Is it possible to pay the IUC in installments?
Yup. According to article 42 of the General Tax Law, anyone who cannot fully comply with the tax debt at once may request payment in installments. The request must be made through the e-counter or delivered to any Finance service.
Who is exempt?
Although it is mandatory to pay the IUC, the tax code provides for exceptions to this rule. Find out if you are entitled to an exemption from paying the IUC and how to apply it.
Congratulations!
For more information, please contact us.
(Author)
Raj Don
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