Owners of N1G category electric vehicles cannot apply the Personal Income Tax deduction

The application of the deduction for the acquisition of electric vehicles in the income tax return is subject to strict compliance with the technical and administrative requirements established in current regulations. Recently, the Dirección General de Tributos (DGT) has clarified the scope of this tax benefit in relation to vehicle classification.

What the DGT has ruled

The binding ruling determines that the deduction provided for in the fifty-eighth additional provision of the Personal Income Tax Law (LIRPF) is only applicable to vehicles belonging to categories M1, L6e, L7e, L3e, L4e, or L5e.

In this sense, the administration establishes that a vehicle classified as category N1G, intended for the transport of goods, is excluded from this benefit. The resolution underlines that neither the private use the taxpayer assigns to the vehicle, nor its functional characteristics, can modify this exclusion, as the rule is based on the administrative category of the asset.

What it means for you

If you are an individual acquiring an electric vehicle with the intention of reducing your tax burden through this deduction, you must verify the technical classification of the model before purchase. The regulations do not allow for a subjective interpretation of the vehicle's use; what prevails is the technical designation assigned by the traffic authority.

This implies that, even if the vehicle is used exclusively for personal travel and possesses the characteristics of a conventional car, if its technical data sheet registers it as a goods transport vehicle (N1G), the deduction will be improper in the event of an inspection by the Tax Agency (Agencia Tributaria).

What you should do

Before finalizing the purchase of an electric or hybrid vehicle, it is necessary to check the exact administrative category of the selected model. It is essential to ensure that the vehicle falls within the groups permitted by the LIRPF to avoid tax contingencies in future income tax returns. Each acquisition situation must be analyzed based on the manufacturer's official technical documentation.