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V4033-16 22 September 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · deducción de cuotas

IVA deduction not allowed for caravan if income is solely from exempt writing activity

A climbing book author asks whether they can deduct VAT on a caravan purchased for travel while working. The DGT responds that if income comes solely from exempt writing activities, no VAT deduction is permitted.

The question raised

Deductibility in VAT and Personal Income Tax of the aforementioned acquisition.

The DGT's ruling

Regarding VAT, if the writing activity is exempt, there is no right to deduction; if other taxable activities exist, pro rata or differentiated sectors shall apply, with a presumption of business use of 50% for passenger vehicles. Regarding Personal Income Tax, to deduct depreciation and expenses, the vehicle must be used exclusively for the economic activity, as the motorhome does not fall under the exception of accessory use for private needs.

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