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V0520-20 4 March 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 IRPF allocation requirements

A lawyer inquires about the deductibility of VAT and IRPF for a rented vehicle used both for business and private purposes. The DGT states that tourist vehicles have a 50% presumption of business allocation, with maintenance costs depending on actual usage, whereas in IRPF, no deduction is allowed if the vehicle is not exclusively used for business.

The question raised

Question raised 1st: Deductibility in VAT of the amounts incurred by the acquisition and expenses caused by the vehicle.

The DGT's ruling

Regarding VAT, passenger vehicles shall be presumed to be used for the activity at a rate of 50% once their professional use has been proven, although a different degree may be demonstrated. Related expenses (fuel, repairs) are deductible if their consumption is allocated to the activity. Regarding Personal Income Tax (IRPF), to deduct expenses for a passenger vehicle, it must be used exclusively for the economic activity, as the exception for incidental personal use does not apply to this type of asset.

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