Everyone who owns a car will have to pay SPVAT in 2025: understand the new mandatory tax
From 2025, drivers across Brazil will have a new obligation with the government: SPVAT. The new mandatory tax is here to replace the extinct DPVAT, and promises to impact all land vehicle owners.
In May 2024, President Lula sanctioned the law that brought back mandatory insurance for victims of traffic accidents, now called SPVAT (Mandatory Insurance for the Protection of Victims of Traffic Accidents). But after all, what changes with this new mandatory tax?
What is SPVAT?
O SPVAT is a reissue of the old DPVAT, that mandatory insurance that everyone complained about paying along with the IPVA, but which had the crucial function of protecting victims of traffic accidents. The difference now is that, in addition to reemerging with a more modern name, SPVAT remains mandatory and will be charged from 2025.
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The new law was enacted to ensure that anyone involved in a traffic accident — whether a driver, passenger or pedestrian — has medical coverage, compensation in the event of disability or death, and assistance with professional rehabilitation. All of this regardless of who caused the accident. And yes, even vehicles without paid insurance will be covered by SPVAT, making the system more inclusive.
Who will be affected by the new mandatory tax?
All owners of land vehicles will have to pay SPVAT annually. Cars, motorcycles, trucks… there will be no escape! If you have a vehicle, you will have to pay between R$50 and R$60 per year, according to preliminary estimates.
It is worth remembering that failure to pay the SPVAT will prevent the vehicle from being licensed. And if you try to drive around without licensing the car? Well, prepare yourself for a very serious infraction, with a fine of R$293,47, 7 points on your license and possible seizure of the vehicle. An additional headache that, let's face it, no one wants.
How do I apply for SPVAT coverage?
If, unfortunately, you or someone you know is involved in a traffic accident, claiming SPVAT compensation will be relatively simple. It will be sufficient to prove the accident and the damages suffered. Coverage will include everything from medical assistance and physiotherapy to funeral services, if necessary. The deadline to request the benefit will be up to three years after the accident, or three years after the death of the victim.
When will it start being charged?
Although the law has already been sanctioned, some details regarding the regulation of SPVAT are still missing. The expectation is that the new mandatory tax will start to be collected in early 2025, but the Superintendence of Private Insurance (Susep) still needs to finalize the collection system and define specific guidelines..
In the meantime, drivers should be aware of the changes and the implementation schedule, as the SPVAT will be essential for vehicle licensing in the future. Anyone who is not up to date with the new mandatory tax will face problems driving on public roads and, of course, will be subject to the penalties provided for in the Traffic Code.
SPVAT arrives to replace the extinct DPVAT
SPVAT arrives to replace the extinct DPVAT, but with the same mission: to protect victims of traffic accidents throughout Brazil. From 2025, all land vehicle owners will be required to pay this new mandatory tax, and those who do not make the payment will not be able to license the vehicle. Keep an eye on the changes and get ready to include SPVAT in your annual bills from next year!
And you, what do you think of this new regulation?