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A taxpayer inquired whether the reduced 4% VAT rate could be applied to the purchase of a new vehicle for a child with reduced mobility without waiting for the mandatory four-year period, arguing that the circumstances were not analogous. The DGT ruled that since the vehicle serves the same purpose, the conditions are considered analogous, and the four-year interval must be observed.
This ruling clarifies that the four-year waiting period for applying the reduced VAT rate on motor vehicles is strictly enforced, even when the specific circumstances of the user change, provided the purpose of the vehicle remains the same.
The tax team reviews your specific situation.
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