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V0736-20 6 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · afectación

Exclusive business use required to deduct expenses for passenger cars or off-road vehicles

A farmer has enquired whether they can deduct expenses for a passenger car and two off-road vehicles. The Directorate General for Taxes (DGT) has ruled that to deduct these expenses, the vehicles must be assets assigned to the business and used exclusively for its purposes.

The question raised

Deductibility in Personal Income Tax (IRPF) of the expenses associated with the aforementioned vehicles.

The DGT's ruling

To deduct expenses for the acquisition, maintenance, or use of passenger cars or off-road vehicles, these must be assets used for the economic activity. As the activity is not one of the legal exceptions, it is required that they be used exclusively for the activity, without use for private needs. This exclusive use can be proven by means of evidence admitted in law.

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