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V3179-21 22 December 2021 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducibilidad de gastos

Fuel costs deductible in corporate tax if accounting, incurrence and justification requirements met

A transport intermediation company asks about the deductibility of fuel expenses and VAT treatment when supplying fuel to subcontracted transporters. The DGT confirms that such expenses are deductible under certain conditions and that supplying fuel constitutes a supply of goods subject to VAT.

The question raised

Deductibility of fuel expenses regarding Corporate Income Tax.

The DGT's ruling

In Corporate Income Tax, fuel expenses are deductible provided they comply with accounting registration, accrual, documentary justification, and are not non-deductible expenses pursuant to Article 15 of the LIS. Regarding VAT, the taxpayer makes supplies of goods when providing fuel to carriers, and must apply the general rate of 21%. The taxable base for said supply is the agreed amount, which may not reduce the taxable base of the transport service.

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