Brazil loves taxes. So why not add yet another one to the list. This time, we’re talking about IPVA or Imposto sobre a Propriedade de Veículos Automotores. It’s an annual tax levied on registered vehicles and a requirement to getting a license plate.

IPVA is paid each year to the state government where a vehicle is registered. The tax is used to fund various public services, such as road construction and maintenance, public transportation and public safety.

The date of payment and the amount of the tax vary based on the state as well as the type and value of the vehicle. In São Paulo, for example, payment is generally due in January with the exact date determined by your license plate number.

Payment is simple. Most states allow you to pay IPVA online. At a minimum, you’ll be asked for your CPF (taxpayer ID number) and the vehicle’s license plate number.

Paying on time is critical. If you’re late or fail to pay, you could be fined. In some cases, you might be prohibited from driving the vehicle. If your car is an older model, however, you might be exempt from paying IPVA.

In the past, São Paulo required that the entire year’s IPVA tax be paid before you could sell your vehicle. But that recently changed. If you’re paying in installments but up to date on your payments, you’ll still be able to transfer ownership.

So before you take your new ride out for a spin, make sure you’re current with your IPVA.