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V4951-16 ·15 November 2016 ·consulta-vinculante Medium impact
Tax

Vehicle depreciation is deductible for Corporate Tax if necessary for business, and VAT on passenger cars is deductible at 50%

A professional law firm has enquired whether it can deduct 100% of vehicle depreciation and VAT. The DGT ruled that depreciation is deductible provided it meets registration, accrual, and justification requirements, whereas VAT on passenger cars is subject to a 50% presumption of business use.

In 6 key points

How it affects those involved

This ruling clarifies the limitations on vehicle-related tax deductions, reinforcing the 50% presumption for VAT on passenger cars and the necessity of strict compliance for depreciation deductions in Corporate Tax.

Lifecycle

2016-11-15PublishedPublished 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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