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V0256-21 16 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción de cuotas

Vehicles for tourism face 50% VAT presumption; exclusive allocation needed for IRPF deductions

A lawyer asks whether VAT and IRPF can be deducted on a vehicle purchased solely for business use. The DGT responds that a 50% presumption of VAT allocation applies to tourist vehicles, while exclusive allocation is required for IRPF deductions.

The question raised

Whether the vehicle acquired exclusively for the development of the activity may be deducted for Personal Income Tax and VAT purposes.

The DGT's ruling

Regarding VAT, passenger vehicles shall be presumed to be used for the activity at a rate of 50%, although a different degree may be proven. Related expenses (fuel, repairs) are deductible if their consumption is applied to the professional activity. Regarding Personal Income Tax (IRPF), the deduction of expenses and depreciation requires the vehicle to be an asset assigned to the activity, which necessitates its exclusive use in the activity, as passenger vehicles do not constitute an exception for ancillary use.

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