They are the most monitored expenses by Hacienda. As any other expenses, they must be justified, but vehicle expenses demand more aspects to be considered.
Vehicle acquisition and maintenance expenses will only be deductible (both in VAT and personal income tax) if the vehicle is used exclusively for the development of your business activity.
How can you prove it?
Everything that justifies that you use your vehicle for your business:
A list of your customers and where they reside
Visits agreed via email
Technical specifications sheet of your vehicle
Have the vehicle labelled and it’s not high-end
If you have a second vehicle for private use
On which jobs is the FULL deduction of this expense allowed?
Carriage of goods and passengers
Driving or pilot lessons
Test vehicles used by manufacturers
Am I entitled to a deduction if it is not one of those jobs?
If you are not engaged in any of the professions listed above, the deduction for the vehicle will be reduced to 50% of the VAT, with no deductions for Personal Income Tax (IRPF).
An invoice with all the necessary data must be presented
If it is a maintenance expense, the vehicle cannot be a high-end vehicle
The vehicle must be in the name of the interested party
Gasoline expenses must be incurred during the workday
If your activity is VAT exempt, you cannot deduct this type of expense.