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V2501-20 22 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción de cuotas

Commercial agents may deduct 100% IVA and IRPF expenses under specific conditions

A commercial agent enquires about the deductibility of vehicle acquisition and expenses under IVA and IRPF. The DGT responds that, as a commercial agent, a 100% IVA attribution is presumed and IRPF deductions are allowed if private use is incidental and irrelevant.

The question raised

Deductibility of vehicle acquisition for VAT and Personal Income Tax purposes.

The DGT's ruling

Regarding VAT, commercial agents' vehicles are presumed to be 100% used for business activities. Related expenses (fuel, repairs, etc.) are deductible if their consumption is applied to the development of the professional activity. Regarding Personal Income Tax (IRPF), expenses and depreciation are deductible if the vehicle is an asset used for business purposes, with private use being considered incidental and irrelevant for commercial agents.

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