Deduction of VAT on vehicles used by employees for personal purposes – Tax criteria clarification.

• The issue is about the deduction of VAT on vehicles used “mixed” by the company and provided to employees for personal use for free
• The taxpayer must prove the vehicle’s use for business activities to deduct VAT
• If proven, it is presumed that the vehicle is used 50% for business activities, unless it is on a specific list of vehicles
• The criteria is reiterated from a previous resolution dated 27-09-2024
• References to the VAT Law 37/1992, specifically articles 95.1 and 95.3.2

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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