Skip to content
Back to index
V0532-19 12 March 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derecho a la deducción

It is possible to deduct VAT on automobiles if their intended use for sale within the business activity is proven

A company trading in livestock equipment is expanding its activities to include the sale of new passenger cars and asks whether it can deduct VAT on these vehicles. The DGT rules that this is possible provided that the intention to use them for a taxable and non-exempt activity is proven.

The question raised

Question raised: Deductibility of the amounts paid under Value Added Tax on the acquisition of automobiles that are subsequently intended for sale.

The DGT's ruling

Las cuotas soportadas por la adquisición de vehículos serán deducibles si se puede acreditar, mediante elementos objetivos, la intención de destinarlos al desarrollo de una actividad que origine el derecho a la deducción. Es necesario que el sujeto pasivo sea empresario o profesional y que los bienes se utilicen en operaciones sujetas y no exentas. La deducción debe efectuarse en función del destino previsible de los bienes.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Email
Contact