Treatment for VAT and direct taxes on “recharges” of an electric vehicle for a sales agent

• The taxpayer is requesting information on the correct treatment for VAT and direct taxes for the recharging of their electric car.
• The taxpayer is currently deducting 80% of the fuel cost for their car for direct taxes, including fully deducting the VAT.
• The taxpayer wants to deduct the cost of electricity used for recharging their electric car.
• The taxpayer believes they can deduct 80% of half of the taxable amount on their bill for income tax, and deduct 50% of the total VAT.
• The tax agency states that the deductibility of VAT on vehicle purchases and related expenses is partially allowed at 40%, but this does not apply to vehicles used for business purposes or for agents and sales representatives.
• The tax agency confirms that the full deductibility of VAT applies to the purchase and related costs of electric cars for the taxpayer.
• The tax agency notes that the deduction may be limited for goods and services used for non-taxable operations, and the amount that cannot be deducted is determined based on objective criteria.

Source: agenziaentrate.gov.it

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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