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V3694-16 5 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · elemento patrimonial afecto

Deduction of vehicle expenses and depreciation only permitted if used exclusively for business activity

A partnership has enquired whether it can deduct the expenses and depreciation of a van used for its commercial activity. The Spanish Tax Agency (DGT) has ruled that deductibility depends on the vehicle being an asset assigned to the activity through its exclusive use.

The question raised

Whether the expenses derived from said vehicle, including its depreciation, may be deducted.

The DGT's ruling

To deduct expenses and depreciation, the vehicle must be an asset used for the economic activity. If the vehicle is used exclusively for the activity, both depreciation and operating expenses may be deducted. If the use is not exclusive, the vehicle shall not be considered used for the activity and the deduction of such concepts shall not be possible.

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