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V1085-20 28 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción de cuotas

VAT deduction for tourist vehicles and related expenses, IRPF requirements

An agricultural engineer enquires about the deductibility of VAT on the purchase of a vehicle and associated costs. The DGT responds that tourist vehicles are subject to a 50% presumed VAT liability, and related expenses depend on their classification under the business activity.

The question raised

Question raised 1st VAT deductibility of the amounts incurred by the acquisition and expenses caused by the vehicle.

The DGT's ruling

For passenger vehicles, a degree of business use of 50% is presumed once its use for the activity is proven, unless they are vehicles from the specified list with 100% business use. The right to deduct VAT on expenses such as fuel or repairs is independent of the acquisition of the vehicle and depends on whether its consumption is applied to the development of the activity. Business use must be proven by any means admitted in Law, and mere accounting entries or tax returns shall not be sufficient.

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