Note from the Tax Agency on the transfer of vehicles to employees and VAT treatment

The transfer of vehicles to employees by their employers has recently been the subject of scrutiny by the Court of Justice of the European Union (hereinafter, CJEU), the Audiencia Nacional (hereinafter, AN) and the Central Economic-Administrative Audiencia Nacional (hereinafter, AN) and the Tribunal Económico-Administrativo Central (hereinafter, TEAC), which has led to a change in some of the criteria for the application of the rules which, until this new case law
and doctrine, were taken into account by the tax administration.

The purpose of this note is to analyse, in the case of mixed-use vehicles transferred to employees, the interpretative criteria that employees, the interpretative criteria that affect the following points:

• The criterion of availability for private use
• The consideration of the transfer of vehicles by the employer for VAT purposes as a supply for consideration or free of charge.

Source Agencia Tributaria (In Spanish)

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