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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A solicitor enquires about the deductibility of VAT on the purchase of a motor vehicle and associated costs. The DGT responds that a 50% presumed allocation applies to motor vehicles, and related expenses (fuel, repairs) depend on their own allocation to the activity.
Taxpayers may deduct VAT on motor vehicles under a 50% presumed allocation to business activity, with related operating costs only deductible if properly allocated to the business.
The tax team reviews your specific situation.
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