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V0759-20 7 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · vehículo mixto

VAT deduction for mixed-use vehicles and IRPF treatment

A construction professional enquires about the deductibility of VAT and IRPF for a mixed-use vehicle in a leasing arrangement. The DGT states that VAT is presumed deductible at 50%, while IRPF allows expenses only if the vehicle is used exclusively.

The question raised

Question raised 1st: VAT deductibility of the amounts incurred for the acquisition and expenses caused by the mixed-use vehicle mentioned in the inquiry.

The DGT's ruling

In VAT, mixed-use vehicles carry a presumption of business use of 50%, unless a different degree is proven or they are vehicles intended for the transport of goods, in which case the presumption is 100%. Fuel and maintenance expenses are deductible if their consumption is allocated to the business activity. For Personal Income Tax (IRPF), in order for expenses and depreciation to be deductible, the vehicle must be used exclusively for the activity, except in the specific cases listed in the regulations that allow for partial business use.

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