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V1806-21 9 June 2021 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción de cuotas

Deductible IVA for vehicles if usage level is proven higher than 50%

A company asks whether it can deduct the remaining 50% of VAT on a vehicle after deducting only half, claiming exclusive use. The DGT responds that while there is a presumption of 50% usage for cars, the taxpayer may prove a different usage level using admissible legal evidence.

The question raised

The possibility of deducting, according to the administration's response, the remaining 50% of the VAT for said allocated vehicle, as the taxpayer considers the exclusive allocation thereof to be legally proven.

The DGT's ruling

For passenger vehicles, a 50% business use allocation is presumed, unless they fall under the cases of 100% allocation listed in the law. Notwithstanding, the taxpayer may prove a degree of use higher or lower than said 50% by any means of proof admitted in Law. Accounting records or tax returns are not sufficient means of proof to establish said degree of allocation.

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