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V2871-20 ·23 September 2020 ·consulta-vinculante Medium impact
Tax

Vehicle renting for persons with disabilities subject to 21% VAT rather than 4% reduced rate

A person with a disability enquired whether the 4% reduced VAT rate applies to vehicle renting for the transport of persons with reduced mobility. The Directorate General for Taxes (DGT) ruled that the reduced rate applies only to the supply, acquisition, or import of goods, and not to the provision of services such as vehicle renting.

In 6 key points

How it affects those involved

This ruling clarifies that vehicle leasing/renting services do not qualify for the reduced VAT rate, even when intended for users with disabilities, as they are classified as services rather than the supply of goods.

Lifecycle

2020-09-23PublishedPublished 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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