Skip to content
Back to index
V4319-16 6 October 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción de cuotas

VAT on repairs for rented vehicles may be deductible if business use requirements are met

A renting lessee inquired whether they could deduct VAT on vehicle repairs covered by insurance. The DGT ruled that the deductibility of repairs is independent of the vehicle's specific business use allocation and that the lessee is the actual recipient of the service.

The question raised

Issue raised: Deductibility of the amounts of input VAT incurred for repairs.

The DGT's ruling

The amounts incurred for repairs are deductible to the extent that they are used for the development of the business or professional activity. The right to deduct these services must be decoupled from that applicable to the acquisition of the vehicle itself. In renting contracts where the lessee takes out the insurance, the recipient of the repairs is the lessee, who holds the right to the deduction.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Email
Contact