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V1997-20 18 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción de cuotas

VAT and expenses deduction for caravan depends on proving economic use

A commercial agent asks about the deductibility of VAT and IRPF for buying and maintaining a caravan. The DGT states that a caravan is not tourism and its deductibility depends on proving professional use.

The question raised

Taxation under VAT and Personal Income Tax regarding the acquisition and maintenance of the motorhome.

The DGT's ruling

Regarding VAT, motorhomes are not considered passenger cars; therefore, their deduction is governed by the rule of foreseeable use based on well-founded criteria. Fuel and maintenance are deductible if their consumption is allocated to the development of the activity. Regarding Personal Income Tax (IRPF), to deduct expenses and depreciation, the motorhome must be an asset used for business purposes, and its use for private needs must be ancillary and manifestly insignificant.

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