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V0599-15 17 February 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción de cuotas

IVA fuel costs can be deducted if consumption affects business activity

A company asks whether it can deduct VAT on fuel for rented machinery and how to prove it. The DGT responds that fuel is deductible if its use relates to the professional activity and a original invoice is available.

The question raised

Deductibility of the VAT amounts incurred for the fuel expenses of said machinery. Method of accrediting the expenses incurred for their deduction.

The DGT's ruling

The amounts incurred for the acquisition of fuel are deductible provided that their consumption is applied to the development of the business or professional activity and to the extent that they are foreseeably used for said activity. The right to deduct these goods and services must be decoupled from the rules applicable to the acquisition of the investment asset itself. To exercise this right, it is essential to possess the original invoice that complies with the regulatory requirements.

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