VAT has been borne on acquisitions of goods or services used in the business or professional activity.

The VAT Regulatory Act establishes that the amounts borne or paid cannot be deducted, to any extent or amount for acquisitions or imports of goods or services carried out without the intention of using them in the performance of business or professional activities, although these goods or services are subsequently fully or partially affected by the aforementioned activities.

In this section, the following should be distinguished depending on whether or not it is investment property (see the concept of investment property below in this chapter):

1. If it is goods that are not investment or services.

   In order to deduct the amounts borne, the goods or services must be used directly and exclusively in the business or professional activity.

   Not directly and exclusively to the activity, among others:

   • Goods used alternatively or simultaneously in business or professional activity and other activities.

   • Goods or rights that are not included in the accounting or official records of the activity.

   • Assets and rights that are not included in the business or professional assets.

   Example:

   If a computer equipment that cost 1,000 euros or the telephone for a business activity and for private purposes is used simultaneously, it is not possible to deduct the amounts borne to any extent.

2. In the case of payments borne in the acquisition, import, lease or transfer of use of investment goods used in all or part of the business or professional activity, or if it is the following goods or services directly related to investment goods:

   • Accessories and spare parts.

   • Fuels, lubricate and energy products necessary for its operation.

   • Parking and toll road use services.

   • Renovation, renewal and repair of investment goods.

   In this point 2, the following rules must be taken into account:

   1. The amounts borne in: are not deductible to any extent:

      • Goods or rights that are not included in the accounting or official records of the activity.

      • Assets and rights that are not included in the business or professional assets.

   2. Taxes are partially deductible on the amounts paid in assets used, alternative or simultaneously, in business or professional activity and in other activities.

      In order for this point 2 to be applicable, it is necessary to test the impact, at least partially, on the activity and once the impact has been proven, the presumptions or justification of the degree of impact will be included in the assessment.

   Finally, in this point 2, we must distinguish two cases:

   1. Car and its trailers, mopeds and motorcycles:

      • In general, they are 50% affected by the activity.

      • There is a presumption of impairment of 100% for certain assets: Mixed vehicles used in the transport of goods, those used in the transport of passengers, in the provision of driver teaching services or pilots, in tests, demonstrations or sales promotion by their manufacturers, in the professional journeys of representatives or commercial agents and in surveillance services.

      Example:

      In order to deduct the amount paid in the purchase of a car used for private purposes and in the business activity, it is necessary to prove the impact, at least partially, on the activity and, once tested (for which any legally admitted test means can be used) ), the deduction of 50% of the amount paid will be applied, unless a higher degree of use is sought, in which the case must be tested by the interested party, or a lower person, who must be tested by the Administration.

   2. Other investment goods: The input amounts will be deductible to the extent that they are going to be used in the course of the activity.

      Example:

      In the case of a property that is used for housing and professional office, the amount paid will be deductible in the part affected by the professional activity, with the deduction being a reasonable criterion in proportion to the square metres allocated to the activity with regard to the total metres of the property.

These deductions must be adjusted when a different degree of use is proven in the activity, adapting the procedure for regularisation of deductions for investment goods.

The degree of use in the activity must be accredited by the taxpayer by any means of evidence admitted in law, without it being a sufficient means of proof that the self-assessment is carried out or that the goods are accounted for in the official records of the activity.