Vehicle trading companies may deduct VAT on premises rental

Companies engaged in the trading of vehicles operating under the special scheme for used goods have received a relevant clarification regarding the deductibility of their operating expenses. The doubt lay in whether the application of this special scheme limited the right to recover VAT on other costs necessary for the activity, such as the lease of the property where the business is conducted.

What the DGT has resolved

The Dirección General de Tributos (DGT) has determined that the right to deduct VAT on the rental of a premises is governed by the general rules established in Title VIII of Law 37/1992. The body clarifies that the prohibition on deducting quotas provided for in Article 139 of the aforementioned Law has a specific scope: it applies only to the acquisition or import of the goods that are transferred under the special scheme.

In this sense, the limitation of the rule does not extend to the general expenses of the company. Therefore, the rental of the premises used for the development of the trading activity is not affected by said restriction and maintains its capacity to be subject to deduction.

What it means for you

If your professional activity consists of trading vehicles and you apply the special scheme for used goods, this criterion confirms that your structural expenses do not lose their deductible nature. The regulations seek to ensure that the special scheme affects exclusively the margin of the vehicle operation, without contaminating the deductibility of other essential operating costs.

• The rental of the premises remains an expense entitled to VAT deduction.
• The prohibition in Article 139 of Law 37/1992 is exclusive to the goods subject to the special scheme.
• General operating expenses maintain standard deduction rules.

What should be done

It is necessary to ensure that the use of the premises for the economic activity is correctly documented to support the VAT deduction. Since deductibility depends on the direct link between the expense and the business activity, each case must be analyzed to guarantee that the lease complies with the requirements of current regulations. It is recommended to verify the correct application of the special scheme in vehicle invoices to avoid confusion with operating expenses.