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V3092-19 4 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renting

Medical equipment renting fees may be deductible in IRPF and VAT depending on activity type and contract nature

A doctor asks whether payments for medical equipment leasing are deductible in IRPF and VAT. The DGT responds that such payments are deductible in IRPF if linked to income and meet registration requirements, while VAT deductibility depends on whether medical services are exempt or taxable.

The question raised

Deductibility of renting installments in both Personal Income Tax and Value Added Tax

The DGT's ruling

In Personal Income Tax, renting expenses are deductible if they are proven to be linked to the generation of income and comply with requirements for temporal imputation, accounting registration, and justification. If the contract is a financial lease, the depreciation and the financial charge shall be deducted. Regarding VAT, the deduction depends on whether the activities are taxable or exempt; if both are performed, the pro rata rule shall apply. Medical equipment is considered an investment good, allowing for deduction to the extent that it is used in the professional activity.

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