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V1611-24 3 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción de cuotas

50% VAT deduction for cars and IRPF use requirements

A solicitor asks about VAT and IRPF deductibility for a vehicle, its maintenance and fuel. The DGT responds that there is a 50% presumption of VAT liability for cars, while for IRPF, exclusive use for business must be proven.

The question raised

The question concerns the deduction of VAT and Personal Income Tax (IRPF) for expenses derived from the acquisition of the vehicle, as well as those corresponding to maintenance and gasoline expenses.

The DGT's ruling

Regarding VAT, passenger vehicles are subject to a 50% presumption of business use, although a different degree may be proven. Fuel and maintenance expenses are deductible if their consumption is applied to the development of the activity. For Personal Income Tax (IRPF), to deduct depreciation and expenses, the vehicle must be an asset used for business purposes, which requires exclusive use in the professional activity, as passenger vehicles do not benefit from the exception for ancillary use.

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