Skip to content
Back to index
V0344-22 23 February 2022 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

Fuel VAT deductible if linked to business activity and legal requirements met

A non-profit association asks whether VAT on fuel used for project-related travel can be deducted. The DGT responds that it can be deducted if the entity is a business or professional and the consumption relates to the development of its economic activity.

The question raised

Question raised: Whether the Value Added Tax incurred in the gasoline invoices for said trips is deductible for said association.

The DGT's ruling

The amounts incurred for the acquisition of fuel shall be deductible provided that its consumption is allocated to the development of the business or professional activity and is used in transactions that are subject and not exempt. If the fuel is used exclusively in economic activities that are subject but exempt, no deduction may be claimed. The allocation of the fuel to the activity must be proven by the taxable person by any means of evidence admitted in law.

Free assessment and quote