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V3089-20 15 October 2020 · SG de Impuestos sobre el Consumo Criterion in force
OTRO · impuesto especial de matriculación

Exemption from Vehicle Registration Tax for rental vehicles possible with prior approval

A company intending to engage in caravan rental asks whether it can be exempt from Vehicle Registration Tax and whether VAT can be deducted. The DGT responds that exemption requires prior administrative recognition and that VAT is deductible if the intention to use vehicles for business purposes is proven.

The question raised

Question raised - Whether it would be exempt from paying the Special Registration Tax.

The DGT's ruling

To obtain the exemption from the Special Registration Tax, prior recognition must be requested via form 05 before registration, providing the technical data sheet and the IAE receipt. Motorhomes are not passenger cars; therefore, their VAT deduction does not benefit from the 50% presumption, but rather depends on the intended use for the activity. The VAT on expenses such as fuel or repairs is deductible if their use in the business activity is proven.

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