IPVA is a tax that must be paid annually by all vehicle owners. However, there are some exceptions in Brazil where IPVA is exempt. So, keep reading to find out what they are!

Well, IPVA is the Tax on Motor Vehicle Ownership, and you can pay it in a single installment or choose to pay it in 3 installments.

If the tax is not paid, you will not be able to license your vehicle and will also be subject to a fine and have your vehicle impounded. So, be aware!

However, be aware that there are cases in which you do not need to pay this tax.

Therefore, there are 3 conditions under which the IPVA (Vehicle Property Tax) does not need to be paid.

They are: by immunity, by exemption, or by waiver.

Therefore, you need to know if you are paying the tax unnecessarily.

Furthermore, there is the exemption based on the vehicle's age, and this IPVA exemption in Brazil varies from state to state.

So, follow along and find out if you don't need to pay the IPVA (Vehicle Property Tax)!

So, as we mentioned, there are 3 conditions under which IPVA payment is not mandatory in Brazil: waiver, immunity, and exemption.

Thus, the exemption occurs when the owner loses possession of the vehicle for reasons such as theft, forfeiture, if the vehicle is auctioned as scrap, destruction, seizure or judicial attachment, or permanent deregistration.

Furthermore, vehicles belonging to public bodies, political parties, labor unions, social or educational institutions (provided they are non-profit), and places of worship qualify for tax exemption and are not subject to the tax.

In the case of exemptions, we have some specific vehicles, such as trains, agricultural machinery, and forklifts and cranes used in commerce, industry, or construction.

Certain vehicle categories are also exempt due to their use, such as taxis and motorcycle taxis, vehicles used for charter or school transport, vehicles for people with physical or mental disabilities, and those used for diplomatic purposes.

Those with physical or mental disabilities who have the following conditions may apply for tax exemption: autism, stroke, amputees, visual impairment, HIV, kidney failure, paralysis, cerebral palsy, paraplegia, and poliomyelitis.

And finally, we have the exemption rule based on the vehicle's age, which varies by state in Brazil.

It's important to remember that taxes in 2022 will undergo adjustments, not to the rates themselves, but because the calculation is based on the car's value when the IPVA (Vehicle Property Tax) was paid in 2021.

And, due to the pandemic, vehicle prices have risen due to pent-up demand resulting from constant production shutdowns of new cars by automakers.

Thus, even used cars, which normally depreciate, saw an increase in their resale values.

So, see below how the exemption rule works in each state.

So, let's list below the rules for IPVA (Vehicle Property Tax) exemption in Brazil based on vehicle usage time.

The states where vehicles are exempt after 10 years are: Amapá, Goiás, Rio Grande do Norte, and Roraima.

The best-selling vehicles that fit this description were the Chevrolet Celta, Corsa Sedan, Fiat Strada, Fiat Uno, and Gol.

Some models produced in 2010 are still exempt from this category, such as: Audi A3 and A4, Astra, Blazer, BMW 120i and 130i, and Citroën C3, among others.

Furthermore, vehicles over 15 years old are exempt from IPVA (Vehicle Property Tax) in the following states: Amazonas, Bahia, Ceará, Distrito Federal, Espírito Santo, Maranhão, Mato Grosso do Sul, Pará, Paraíba, Piauí, Rio de Janeiro, Rondônia, Sergipe, and Tocantins.

In Mato Grosso, the exemption applies to vehicles that are 18 years old or older.

Furthermore, the exemption for those 20 years and older applies in the following states: Acre, Alagoas, Paraná, Rio Grande do Sul, and São Paulo.

This includes models manufactured up to the year 2000, such as the Alfa Romeo 145, the Audi A3 and A6, the Asia Topic, and the Chevrolet S10.

In Minas Gerais, a progressive tax exemption rule is applied, which reduces the amount of tax.

However, in the case of Minas Gerais, even the oldest vehicles are not exempt from paying the IPVA (Vehicle Property Tax).

In Santa Catarina, vehicles manufactured up to 1985 are exempt.

In Pernambuco, only vehicles that are more than 30 years old and registered as collector vehicles with a Certificate of Originality are exempt.

So, check the state and year on your vehicle's registration certificate and see if you will be exempt from paying the IPVA (Vehicle Property Tax) in 2022.

Important! Please note that in order to avoid paying the tax, you will need to submit a request on your state's Treasury Department website. There you will find all the information, such as prerequisites, forms, and required documents.

In the case of physically or mentally disabled individuals, a medical report confirming the disability is required.

Furthermore, the vehicle must be adapted to the conditions specified in this report.

Each state has a specific procedure for requesting an exemption; in some, you can apply online, while in others you will need to submit printed documents.

Therefore, be aware that times are tough, and not having to pay the IPVA (Vehicle Property Tax) can help you.

Because, as we know, the beginning of the year involves paying various taxes and other recurring expenses.

So, be sure to check the condition of your vehicle and, if necessary, save a good amount of money!

Want to learn more about IPVA (Vehicle Property Tax)? Then check out our content below!