Impossibility of deducting passenger car expenses with private use

The Dirección General de Tributos (DGT) has issued a relevant criterion for self-employed professionals who use passenger cars in their economic activity. The ruling addresses the possibility of deducting expenses derived from the use of these vehicles, such as fuel and maintenance, in the Personal Income Tax (IRPF) return.

What the DGT has resolved

The body determines that, for passenger car expenses to be deductible, the vehicle must constitute an asset exclusively assigned to the economic activity. In the event that the vehicle is used simultaneously for private purposes, the requirement of exclusive assignment necessary for the deduction is broken.

The resolution underlines that, as this does not fall under one of the legal exceptions provided for in the regulations, private use prevents the application of the expense deduction. Likewise, the DGT points out that exclusive assignment must be proven through the means of evidence admitted by law.

What this means for you

If you are a self-employed professional and you use a passenger car both for trips related to your activity and for your private life, you will not be able to deduct fuel, maintenance, or repair expenses in your IRPF. The regulations require a clear separation between professional and private use to allow the deduction of these costs.

This criterion reinforces the need for the assignment to be total and exclusive for the Administration to accept the deductibility of the expenses associated with the vehicle.

What you should do

Given this situation, it is fundamental to analyze the nature of the vehicle's use and the documentation that supports said activity. It is necessary to assess the possibility of proving exclusive assignment if you intend to apply the deduction, keeping in mind that the burden of proof lies with the taxpayer in accordance with the General Tax Law (Ley General Tributaria).

Each professional situation is different, so it is recommended to analyze the documentation and the operational reality of each case to determine the viability of the deduction.