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V0849-21 12 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · afectación de elementos patrimoniales

Deductibility of vehicle, housing, meal, and renting expenses under requirements of business use and correlation

An insurance agent enquires about the deductibility of vehicle expenses, household utilities, client meals, and machinery leasing. The DGT clarifies the conditions for business use for each type of expense and the applicable limits.

The question raised

Question raised: Deductibility of expenses derived from the use of the vehicle used exclusively for the activity, as well as household utility expenses, business meals with clients, and the installments paid for the renting of the scanner and printing machine.

The DGT's ruling

To deduct vehicle expenses, the vehicle must be an asset used exclusively for the activity, subject to exceptions for commercial agents. Deductible household utilities are limited to 30% of the proportion of square meters allocated to the activity. Business meals with clients are deductible if they are linked to the activity and comply with the 1% limit of the turnover. Machinery renting is deductible as an expense if it is an operating lease, or through depreciation and financial expenses if it is a finance lease.

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