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What can I deduct?

What goods or services are eligible for deduction?

You can deduct the VAT contributions borne in the Spanish territory of application of the Tax for the acquisition of goods and services that are affected by business or professional activity . In the case of current assets, they must be used exclusively in the activity, while the fees incurred in the acquisition of investment assets will be deductible in proportion to the degree to which they are used.

VAT payments borne for the acquisition or leasing of vehicles, their trailers, mopeds or motorcycles, mixed vehicles and all-terrain vehicles, which are used in the development of a business or professional activity, may be deducted by 50 percent, since the VAT law presumes that the degree of impact, unless you can prove a higher degree of use .

However, if the following vehicles are involved, the presumption of affectation to the activity is 100 percent, so you can deduct the entire fee:

  • vehicles used for the transport of .

  • Those used for the transport of passengers, and for teaching drivers or pilots .

  • Those used by their manufacturers for testing, trials, demonstrations or in sales promotion, by sales representatives or agents in their professional travels and those used in surveillance services .

The degree of use in activity must be accredited by any means of proof.

Although the following goods and services are used in the activity, it is not possible to deduct the VAT amounts incurred for their acquisition: (unless they are the object of your activity or are for exclusive industrial, commercial, agricultural or scientific use):

  • Jewellery, gems, precious natural or cultured stones, articles made from gold or platinum.

  • Food, beverages and tobacco.

  • Entertainment and recreational services.

  • Goods or services intended as hospitality for customers, employees or third parties (e.g. Christmas hampers for employees). (This does not include free samples or advertising objects of little value (requirements in art.7.2 and 4)

  • Travel, hospitality and catering services, unless the corresponding expense is considered deductible in IRPF or IS .