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V1135-17 11 May 2017 · SG de Impuestos Especiales y de Tributos sobre el Comercio Exterior Criterion in force
OTRO · iedmt

First registration of an N1 vehicle may be exempt from IEDMT if significantly used for economic activity

A local council has requested clarification regarding the liability for IEDMT on an N1 vehicle intended for social welfare. The DGT explains that these vehicles are exempt if they are significantly used for an economic activity, which is presumed to occur if at least 50% of the VAT can be deducted.

The question raised

Liability for the Special Tax on Certain Means of Transport (IEDMT).

The DGT's ruling

The first permanent registration in Spain of N1 category vehicles is not subject to the Special Tax on Certain Means of Transport (IEDMT) if the requirements of Law 38/1992 are met. Significant use for an economic activity is presumed when the taxable person is entitled to deduct at least 50% of the VAT. However, the law establishes a mere presumption, meaning significant use may exist without meeting said VAT deduction threshold.

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