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A query was raised regarding whether VTC drivers can utilise the objective estimation method for Personal Income Tax (IRPF) and the simplified VAT regime. The Directorate-General for Taxes (DGT) ruled that this is not possible, as their activity is classified as vehicle hire with a driver.
VTC drivers must comply with standard accounting and tax regimes, as they are excluded from simplified tax methods due to the legal classification of their service.
The tax team reviews your specific situation.
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