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V1910-14 ·16 July 2014 ·consulta-vinculante Medium impact
Tax

VAT deduction for the acquisition of a passenger vehicle is presumed to be 50%

An occupational risk consultancy and training company has enquired whether it can deduct 100% of the VAT on a vehicle used for its business activities. The Directorate-General for Taxes (DGT) has ruled that the presumed deduction is 50% and that it is only deductible to the extent that the vehicle is used for transactions that are taxable and not exempt.

In 6 key points

How it affects those involved

This ruling clarifies the limitations on VAT recovery for passenger vehicles, reinforcing the 50% presumption and the necessity of proving business use for taxable operations.

Lifecycle

2014-07-16PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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