Doctrine by topic · DGT Observatory
How the DGT's position on this topic has evolved, and the rulings it rests on.
Current position
The first registration of N1 category vehicles is not subject to IEDMT (Tax on the Transfer of New Motor Vehicles) if they are significantly used for an economic activity. This use is presumed when it is possible to deduct at least 50% of the IVA (Value Added Tax). For used vehicles, the tax base is their market value, determined by Administration tables or the value agreed upon between independent parties.
The DGT's position on economic use for non-subjectivity to IEDMT in N1 vehicles has remained constant since 2018. The evolution is limited to the technical precision of the presumption of use through the deduction of 50% of the IVA in the most recent ruling. There are no changes in criterion, only greater detail in the application of the rule.
Turning points
Establishes that significant use for an economic activity is presumed if at least 50% of the IVA can be deducted.
Analysis based on 8 of 8 rulings with a stated position. Updated 30 September 2026.