Skip to content
V2535-15 ·3 September 2015 ·consulta-vinculante Medium impact
Tax

Personal Income Tax: Deductibility of passenger cars depends on exclusive use for economic activity

An electrical installation professional has enquired about the deductibility of vehicle, meal, and accommodation expenses for VAT and Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) clarifies that VAT on passenger cars is presumed to be 50% business-related. Furthermore, travel expenses are deductible for VAT only if they are deductible for IRPF, whereas for IRPF, vehicle expenses are only deductible if the vehicle is used exclusively for professional purposes.

In 6 key points

How it affects those involved

This ruling clarifies the strict requirements for deducting vehicle and travel expenses, highlighting the distinction between VAT and IRPF rules and the necessity of exclusive professional use for passenger cars to claim IRPF deductions.

Lifecycle

2015-09-03PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact