SP releases transfer of vehicles with delayed IPVA

Now the transfer of ownership of vehicles is possible even with IPVA (Tax on Motor Vehicle Property) of the current year in arrears. The measure was published in the Official Gazette this Friday (13) and aims to reduce bureaucracy in the sale of used cars and simplify the sales process between individuals.

“We eliminated a barrier that prevented the commercialization and transfer of vehicles. This decree will generate a positive impact in terms of revenue and will be very important for the population and for the sector”, said Governor Tarcísio de Freitas (Republicans).

The measure revokes Article 8 of Decree 67,381/2022, which determined the transfer of ownership of vehicles only after full discharge of the tax.

In addition to facilitating the buying and selling process, the government intends to increase revenue. The expectation of the Treasury Department is that the IPVA 2023 will yield a collection of R$ 23.4 billion to the state government coffers.

The IPVA is one of the main sources of revenue in the State of São Paulo, second only to the Tax on Circulation of Goods and Interstate and Intermunicipal Transport and Communication Services (ICMS).

default

The vehicle fleet in the state is approximately 27 million. Of these, 17.9 million are subject to the payment of IPVA, while 8.5 million are exempt, as they have been manufactured for more than 20 years, and around 920,000 vehicles are considered exempt.

One concern, however, is related to default. Last year alone there were more than 1 million unpaid IPVA titles, which corresponds to almost R$ 1 billion that was not collected by the Government.

Since 2012, the Attorney General of the State of São Paulo (PGE) has been protesting IPVA debts. Currently, more than 2.8 million debts in the state are being protested, totaling almost R$ 3 billion unpaid to public coffers.

Once the debt is protested, the person has a series of restrictions on access to credit, including financing.