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V2047-21 ·8 July 2021 ·consulta-vinculante Medium impact
Tax

Deductibility of vehicle expenses for car rental activities in VAT and IRPF

The consultant asks about the deductibility in IRPF and VAT of vehicles used in a car rental business. The DGT states that for VAT, a 50% tax incidence is presumed for passenger vehicles, but in car rental cases, a higher degree of activity incidence can be proven. For IRPF, expenses are deductible even with accessory private use.

In 6 key points

How it affects those involved

Businesses engaged in car rental can claim higher VAT incidence rates and deduct vehicle expenses even with some private use.

Lifecycle

2021-07-08PublishedPublished 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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