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V2350-21 18 August 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · gastos de manutención

Self-maintenance expenses require electronic payment to be tax-deductible

A commercial agent enquired about how to justify hospitality and client entertainment expenses, and whether their own maintenance costs could be deducted if the establishment does not accept electronic payments. The DGT ruled that personal maintenance expenses require the use of electronic payment methods.

The question raised

Method of justifying such expenses in the Personal Income Tax, and the possibility of deducting the taxpayer's own subsistence expenses when electronic means of payment cannot be used at the establishment.

The DGT's ruling

The taxpayer's own subsistence expenses are deductible if incurred in catering and hospitality establishments and paid via any electronic means of payment. Client entertainment expenses are deductible up to a limit of 1 percent of the net turnover, provided they are linked to the activity and duly justified. The invoice is the primary means of justification, although it does not constitute privileged evidence if the Administration challenges the reality of the transaction.

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