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V1472-20 19 May 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo reducido

4% VAT rate not applicable to new vehicle purchase unless four years have passed since previous acquisition, subject to exceptions

A taxpayer inquired whether the reduced 4% VAT rate could be applied to the purchase of a new vehicle for a child with reduced mobility without waiting for the mandatory four-year period, arguing that the circumstances were not analogous. The DGT ruled that since the vehicle serves the same purpose, the conditions are considered analogous, and the four-year interval must be observed.

The question raised

Application of the 4 percent tax rate to the acquisition of a new vehicle, even if 4 years have not elapsed since the acquisition of the previous one, on the grounds that it would not be carried out under analogous conditions.

The DGT's ruling

To apply the 4% rate to vehicles intended for the habitual transport of persons with disabilities or reduced mobility, at least four years must have elapsed since the acquisition of another vehicle under analogous conditions. If the new vehicle is acquired to transport the same person as the previous one, the acquisition is considered to be made under analogous conditions. Therefore, the reduced rate is not applicable if the four-year period established in Article 26 bis.two.1.1 of the VAT Regulations is not met.

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