Pedro Rezek Andery Altran
Lawyer at Marcos Martins Advogados
The Federal Supreme Court has ruled that the Motor Vehicle Ownership Tax (IPVA) is due to the state in which the owner of the vehicle is domiciled, i.e. where the vehicle is licensed and registered.
In the STF judgment, Justice Alexandre de Moraes’ vote prevailed, establishing the thesis that
the Constitution authorizes the collection of Motor Vehicle Ownership Tax (IPVA) only by the state in which the taxpayer maintains its headquarters or tax domicile.
This decision reverses the position established by the STF itself in June 2020, to the effect that IPVA should be paid in the place where the vehicle circulated.
This decision is important because of a common practice carried out by some states, which reduce the IPVA rate in order to attract a greater number of vehicle licenses.
In the state of São Paulo, for example, it is not uncommon to see vehicles with license plates from the state of Minas Gerais, because the IPVA rate is lower in that state.
Marcos Martins Advogados makes its tax team available to answer any questions you may have.
