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V0917-23 19 April 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de bienes usados

IVA not deductible for used goods; vehicle expenses depend on activity allocation

A financial services company inquired about the deductibility of VAT on a vehicle purchased under the special regime for used goods and associated expenses. The DGT responds that purchases under this regime do not allow VAT deduction and that vehicle expenses depend on their allocation to the business activity.

The question raised

Question posed: Deductibility of Value Added Tax amounts incurred for expenses related to the use of the aforementioned vehicle in the activity carried out by the applicant.

The DGT's ruling

The amounts incurred for the acquisition of goods under the special regime for used goods are not deductible. For passenger vehicles, a 50% allocation to business activity is presumed, unless they belong to the exhaustive list in Article 95.3.2.a. The deductibility of expenses such as fuel or repairs is decoupled from the acquisition of the vehicle and depends on whether their consumption is allocated to the development of the activity. If the taxable person carries out exempt operations and other taxable operations, the pro rata rule must be applied.

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