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V0054-21 20 January 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

VAT deduction on vehicles: 50% or 100% presumption based on vehicle type and activity use

A commercial agent asks whether VAT on a new vehicle purchase can be deducted. The DGT responds that deduction depends on activity use, with a 50% presumption for passenger cars and 100% for certain cases, such as commercial agents.

The question raised

Question raised: The taxpayer wishes to know whether the VAT paid on the acquisition of the vehicle is deductible.

The DGT's ruling

To deduct VAT, the asset must be used directly and exclusively for the activity, although partial use is permitted for investment goods. Passenger vehicles carry a presumption of use of 50%, whereas those used by commercial agents for professional travel carry a presumption of 100%. Related expenses such as fuel or repairs are deductible if their consumption is applied to the development of the activity and their professional use can be proven.

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