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V4950-16 15 November 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · deducción de cuotas

Presumption of 50% VAT deduction for professionally used tourist vehicles

A professional asks whether they can deduct 50% of the VAT on a new vehicle used for both private and professional purposes. The DGT responds that, once the professional use is proven, a 50% usage presumption applies to tourist vehicles.

The question raised

Question posed: Possibility of deducting 50 percent of the Value Added Tax incurred in the acquisition of a new vehicle.

The DGT's ruling

To deduct VAT on a passenger vehicle, its use for business or professional activities must first be proven. Once such use is proven, the law presumes that the degree of use in the activity is 50%. This presumption allows for the application of said percentage, unless a different degree of use is proven or if the vehicles are subject to a 100% presumption.

Apply this to a real case

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

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