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V3040-16 29 June 2016 · SG de Tributos Locales Criterion in force
OTRO · elemento tributario

Only vehicles used for car rental activities are counted as taxable elements

A query was raised regarding whether vehicles available for sale or in the process of being returned should be included in the calculation of the taxable element for heading 854.1 of the IAE. The DGT ruled that the determining factor is the vehicle's use for the rental activity rather than its temporary status.

The question raised

Consideration of "automobiles" as a tax element, for the purposes of quantifying the quota for heading 854.1, which are available for sale or in the process of being returned.

The DGT's ruling

The tax element for heading 854.1 is the automobile, and its inclusion depends on its direct use for the rental activity at the time of accrual. If the vehicles are no longer used for the rental activity (for example, for sale), they are not counted. If they are in the process of being prepared or repaired for the purpose of being offered for rent, they are counted. The sale of automobiles is a distinct economic activity that requires its own heading, unless they are fixed assets with more than two years of age.

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