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V1728-24 15 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por vehículos eléctricos

Loss of electric vehicle tax deduction if used for business activities

A taxpayer inquired whether they could claim a tax deduction for the purchase of a new electric vehicle if it is used for both business and private purposes. The Directorate General for Taxes (DGT) ruled that the deduction requires the vehicle not to be used for business activities; if it is subsequently used for business, the right to the deduction is lost.

The question raised

Whether the deduction provided for in the fifty-eighth additional provision of the Personal Income Tax Law is applicable in the event that the new electric vehicle is used both for the taxpayer's economic activity and for private purposes.

The DGT's ruling

To apply the deduction for the acquisition of electric vehicles, the vehicle may not be used for an economic activity. According to the Personal Income Tax Regulations, a vehicle is not considered to be used for an economic activity if it is used simultaneously for economic activities and private needs, unless the private use is ancillary and irrelevant. However, the specific regulations for the deduction establish that if, subsequent to the acquisition, the vehicles are used for an economic activity, the right to the deduction claimed shall be lost.

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