Example: Deduction for the purchase of electric vehicles and charging points

On 11 July 2023, after signing the purchase agreement, Ms APR paid the amount of 14,400 euros to the dealer XXX, as a down payment on the future acquisition of a pure electric vehicle (BEV) of category M, from a commercial company whose model appears in the IDEA Vehicle Database, which she will use for her personal use.

The retail price (including taxes) of the aforementioned vehicle is 48,000 euros and the amount pending its acquisition will be paid in three payments of 11,200 euros. One in December 2023, the second in December 2024 and the last with the delivery of the registered vehicle (scheduled for early 2025).

In addition, the dealer, with the consent of Mrs. APR, has completed the procedures to request the €4,500 aid from the incentive programme linked to electric mobility (MOVES III) within the framework of the European Recovery, Transformation and Resilience Plan.

Notwithstanding the foregoing, the taxpayer, who has an individual parking space in the communal garage of the building where she resides, contracted in November 2023 with an authorised company the installation of a charging point for her future car, choosing among the possible alternatives, that of installing a charging point in her parking space connected by cable to the electricity meter of her home (that is, through Diagram 2 included in Complementary Technical Instruction (ITC) BT-52 "Individual scheme with a common meter for the home and the charging station), since the structure of the building and garage allowed it.

To this end, and in accordance with Article 17.5 of Law 49/1960, of 21 July, on horizontal property, I hereby inform the community of owners of my intention to install a charging point for electric vehicles in their space, providing a technical report on the route that the wiring channel was to follow.

The installation was carried out in accordance with the Low Voltage Electrotechnical Regulations, approved by Royal Decree 842/2002, of August 2, specifically ITC-BT-52. Appropriate IP and IK protection level depending on the location according to REBT, so once completed the appropriate Electrical Installation Certificate (CIE) was issued by the installation company.

The total cost reached 2,500 euros, which was paid by Mrs. APR by bank transfer on December 20, 2023. The request has been made for aid from the incentive programme linked to electric mobility (MOVES III) intended for charging infrastructure for “Private use in the residential sector” which could reach 1,700 euros but has not yet been granted.

Note: see the SUPPLEMENTARY TECHNICAL INSTRUCTION (ITC) BT-52 of Royal Decree 1053/2014, of December 12, which approves a new Supplementary Technical Instruction (ITC) BT 52 "Installations for special purposes. Infrastructure for the recharging of electric vehicles" of the Low Voltage Electrical Regulations, approved by Royal Decree 842/2002, of August 2, and other complementary technical instructions thereof, instruction 3, are modified. Installation diagrams for charging electric vehicles .

Determine the amount of the deduction that you can apply in 2023.

Solution:

Deduction in personal income tax for the acquisition of new electric vehicles

Previous note: The taxpayer has the right to apply this deduction because it concerns the purchase for private use of a single new vehicle of category M, belonging to the type of pure electric vehicles (BEV) that appears in the IDAE Vehicle Base and whose sale price of the vehicle does not exceed the maximum amount established for this type of vehicle in Annex III of Royal Decree 266/2021, which is 45,000 euros without VAT (21%).

Furthermore, it can be applied in 2023 because the taxpayer has opted to pay an amount on account (14,400 euros) that exceeds 25% of the acquisition value of the vehicle (48,000 euros) and, in accordance with the stipulations agreed with the dealer, the full payment and acquisition of the vehicle will take place before the end of the second tax period immediately following the one in which the payment of the amount on account was made.
- Deduction base: 43,500
  
  Note: The amount of the public subsidy (Move III aid) requested (4,500 euros) is deducted from the purchase price (48,000 euros). Therefore, 48,000 – 4,500 = 43,500
- Maximum deduction base: 20,000 euros
- Deduction amount: (20,000 x 15%) = 3,000
Deduction in personal income tax for the installation of charging infrastructure

Previous note: The taxpayer is entitled to apply this deduction since the installation of the charging point was carried out in 2023 in a property owned by the taxpayer (parking space in the community garage), it is intended for private use and it has the authorizations and permits established in the current legislation.
- Deduction base: 2,500
  
  Note: Until the taxpayer receives a final decision on the granting of the aid that he has requested for the charging infrastructure, he should not deduct the amount of the subsidy from the deduction base.
  
  In the case of the deduction for the installation of recharging infrastructure, unlike the deduction for the purchase of new electric vehicles, DA58 of the Personal Income Tax Law does not allow that "those amounts that, where appropriate, have been subsidized or are going to be through a public aid program" can be deducted from the base, but rather in its section 3 it refers solely and exclusively to the possibility of deducting from the base "those amounts that, where appropriate, have been subsidized through a public aid program." Therefore, their deduction will not proceed until they are granted.
  
  However, once the subsidy has been granted, the tax situation must be regularised so that the amounts corresponding to said subsidy are not included in the deduction base (with the maximum annual deduction base as a limit). To this end, in accordance with article 59 of the Personal Income Tax Regulations, the amount of the improperly applied deduction will be added to the state net quota of the Personal Income Tax return corresponding to the year in which the subsidy was granted.
- Maximum deduction base: 4,000 euros
- Deduction amount: (2,500 x 15%) = 375