For the acquisition of new vehicles belonging to the categories included in Order 5/2020 of 8 June

Regulations: Art. 4.Uno.y) Act 13/1997, of 23 December, which regulates the autonomous range of Personal Income Tax and other taxes transferred, from the Valencian Community.

Amount of the deduction

10% Of the amounts allocated by the taxpayer during the tax period to the acquisition of new vehicles belonging to 100 the categories included in Order 5/2020 of 8 June on the Territorial Policy, Public Works and Mobility Department , approving the regulatory bases for granting grants for the acquisition or electrification of urban bicycles and electric vehicles for personal mobility

Requirements for applying the deduction

• These must be new vehicles belonging to one of the following categories included in Order 5/2020 of 8 June , of the Territorial Policy, Public Works and Mobility Department, approving the regulatory bases for granting grants for the purchase or electrification of urban bikes and personal mobility electric vehicles:

  1. Conventional non-electrified bikes. The bikes that are the object of the aid must be urban.

  2. Electric bikes

  3. Urban bicycle electrification kits.

  4. Personal Mobility Vehicles (VMP)

• The deduction may only be applied by taxpayers whose sum of the general net tax base and the tax base of savings, boxes [0500] and [0510] of the tax return, does not exceed the following amounts:

  • 25,000 Euros in individual tax return.

  • 40,000 Euros in a joint tax return.

Deduction base

• The deduction base is the amounts used to purchase the vehicle.

• The application of the deduction is conditional on the delivery of the monetary amounts derived from the legal act or business that gives entitlement to be applied , it is carried out by credit or debit card, bank transfer, registered cheque or deposit in accounts with credit institutions.

  See additional provision sixteen of Act 13/1997, of 23 December, which regulates the autonomous range of Personal Income Tax and other taxes transferred.

• For each tax period, each taxpayer can deduct the amounts used to purchase a single vehicle.

• Only taxpayers who appear on the vehicle's purchase invoice can apply the deduction

Maximum deduction base

• The maximum deduction base will be constituted by the maximum amount eligible for each type of vehicle, in accordance with Order 5/2020 of 8 June.

  This amount will be as follows

  1. For the purchase of electric bikes: The maximum eligible amount cannot be greater than €1400, including VAT.

  2. For the purchase of conventional bikes (non-electric): The maximum eligible amount cannot be greater than €500, including VAT, or €700 for family bicycles with a child transport charge element.

  3. Bicycle electrification kits: The maximum eligible amount cannot be greater than €600, installation and VAT included.

  4. Electrical VMP: The maximum eligible amount cannot be greater than €450, including VAT.

  order 5/2020, of 8 June, even if they had not been entitled to obtain aid for exceeding their purchase price of the maximum amounts eligible under the aforementioned order, although these amounts serve as a reference for the maximum deduction base limit.

• In the event that there is more than one taxpayer with the right to apply the deduction on the same vehicle, the maximum deduction base should be prorated among them.

• The maximum base of the deduction to be applied in the joint tax return will be identical to that in individual taxation, without the need for it to be increased or multiplied depending on the number of members of the family unit. This maximum base is per taxpayer.

  Examples

  1. Marriage formed by Mr. M.T and Ms. R.V, in which for 2021 each spouse acquired an electric bicycle for an amount of 1,600 euros.

     In accordance with Order 5/2020 of 8 June, the price of electric bicycles cannot be greater than €1,400, including VAT (maximum deductible amount).

     Therefore, in the joint tax return the amount of the applicable deduction will be 10% of the maximum deductible amounts. 100 This is 10% over (1,400 + 1,400) = 280 euros

     Note: The only restriction established is that in the same tax period each taxpayer can deduct only the amounts intended for the acquisition of a single vehicle. There are two taxpayers here and the purchase for each of two electric bikes, which is why 10% of the maximum deductible amount (1,400 euros) corresponds to each of the bicycles purchased.

  2. The same marriage as in the previous example: If Mr. M.T acquires an electric bicycle for an amount of 1,600 euros and Ms. R.V acquires a conventional bicycle for 700 euros.

     In accordance with Order 5/2020 of 8 June, the price of electric bicycles cannot be greater than €1400 , VAT included and that of conventional bicycles (non-electric) may not exceed €500, including VAT, or €700 in the case of family bicycles with a charge element for children's transport.

     Therefore, in the joint tax return the amount of the applicable deduction will be 10% of the maximum deductible amounts. 100 That is, 10% over (1,400 + 500) = 190 euros

  3. The same marriage as in the previous examples: If Mr. M.T acquires an electric bicycle for an amount of 1,200 euros and Ms. R.V acquires a conventional bicycle for an amount of 350 euros.

     As the amounts paid for the purchase of bicycles are lower than the maximum eligible price set by Order 5/2020 of 8 June (1,400 euros for electric bicycles and 500 euros for conventional bicycles), the amount paid will be taken.

     Therefore, in the joint declaration, a deduction of 10 per cent of the amounts paid for the purchase of each bicycle may be included. 100 That is, 10% x (1,200 + 350) = 155 euros