Deductibility of VAT on Mixed-Use Vehicles Provided to Employees for Personal Use

• The administration can only refute the presumed degree of a vehicle’s use in business activities as stated in the VAT law by proving actual business use is less
• Using work hours as per collective agreements is not enough to prove the actual degree of business use but can be an indicator
• Similar views in DGT query V1374-24 from June 10, 2024, and TEAR of Catalonia decision from March 16, 2023
• Reaffirms criterion 2 from RG 00-09152-2021 dated September 27, 2024
• References the VAT Law 37/1992

Source: serviciostelematicosext.hacienda.gob.es

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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