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Operating Expenses: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Stable position High confidence 9 rulings · 2015–2026

Current position

For passenger vehicles, a 50% degree of use for business activity is presumed, unless legal exceptions apply. The deductibility of VAT (IVA) on expenses such as fuel or repairs is independent of the vehicle's business use and depends on whether its consumption is applied to the development of the activity. For Personal Income Tax (IRPF), the deduction of expenses requires that the vehicle be an asset used exclusively for the economic activity.

The DGT's position remains stable regarding the business use of passenger vehicles, maintaining the 50% presumption and the independence of VAT (IVA) on expenses from the vehicle's business use. The rulings reiterate that the deductibility of supplies and operating expenses depends on their direct link to the economic activity.

Analysis based on 6 of 9 rulings with a stated position. Updated 30 September 2026.

Rulings on this topic

9
V1085-20 28 Apr 2020

VAT deduction for tourist vehicles and related expenses, IRPF requirements

SG de Impuestos sobre la Renta de las Personas Físicas
deducción de cuotasbienes de inversiónafectación a la actividadvehículos de turismopresunción de afectación LIVA — Ley 37/1992 del IVA art. 93.CuatroLIVA — Ley 37/1992 del IVA art. 94.Uno.1º
Affects CompanyExpat · Non-residentIndividual
V0914-18 9 Apr 2018

VAT deduction rules for passenger vehicles and criteria for business use

SG de Impuestos sobre la Renta de las Personas Físicas
deducción de cuotasbienes de inversiónafectación a la actividadelementos patrimonialesvehículo de turismo LIVA — Ley 37/1992 del IVA art. 93.CuatroLIVA — Ley 37/1992 del IVA art. 94.Uno.1º
Affects CompanyExpat · Non-residentIndividual

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