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V0657-14 11 March 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción de cuotas

Travel and course expenses deductible if linked to activity

A IT professional asks whether accommodation and travel costs for a course can be deducted from VAT and income tax. The DGT responds that VAT on expenses from other countries is not deductible in Spain, and that deductibility of VAT and income tax depends on the link between the expense and the activity, as well as compliance with legal requirements.

The question raised

I. For the purposes of Value Added Tax, to determine the possibility of deducting the amounts incurred on accommodation and travel expenses to attend the course.

The DGT's ruling

Regarding VAT, travel, hospitality, and catering expenses are deductible in Spain if the amount is a tax-deductible expense for Personal Income Tax or Corporate Tax purposes. Regarding Personal Income Tax, the expenses of a course and its associated travel are deductible if they are required for the conduct of the activity, the income is determined by direct estimation, and the registration and justification requirements are met. The link between the course and the generation of income is a matter of fact that must be assessed by the Administration.

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