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V0354-20 14 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción de cuotas

50% VAT deduction presumption for tourist vehicles and housing supplies rules

A self-employed taxpayer inquires about VAT and IRPF deductibility for a tourist vehicle, pet expenses, and housing supplies. The Tax Agency responds that tourist vehicle VAT is presumed at 50% and housing supplies have a special deductibility calculation.

The question raised

1: Deductibility of passenger vehicles and other expenses for VAT and Personal Income Tax purposes.

The DGT's ruling

Regarding VAT, passenger vehicles are presumed to be used 50% for business purposes if professional use is proven, although a different degree may be demonstrated. Household utilities (water, electricity, gas, etc.) are not deductible if used simultaneously for private purposes, unless the percentage provided in the Personal Income Tax Law is applied. For Personal Income Tax, to deduct utilities in a partially used residence, 30% of the percentage of square meters allocated to the activity is applied. Expenses related to a dog require proof of its exclusive use for the activity.

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