- Annual VAT declaration: car and mobile phone purchases with limited deduction
- Buying a car or mobile phone for your business results in a partial VAT deduction.
- The rules, exceptions, and practical examples are explained to help you correctly fill out the VF section.
- Cars and mobile phones have a limited VAT deduction by law.
- For the acquisition of cars and mobile phones, including related expenses, there may be a limitation on the right to deduct the tax.
- For motor vehicles, according to Article 19-bis1, paragraph 1, letter c) of the VAT Decree, all motor vehicles other than agricultural or forestry tractors are considered:
- Normally used for road transport of people and/or goods.
- With a maximum authorized mass not exceeding 3,500 kg.
- With a number of seats, excluding the driver’s seat, not exceeding 8.
- For these vehicles, the deduction is generally 40% of the tax related to the purchase or import if they are not used exclusively in the exercise of the business, art or profession.
- The current legislation does not exclude the possibility of deducting the entire tax, provided that exclusive use of the means of transport in the business or professional activity is documented.
- Similar deductibility applies to VAT related to the purchase and import of fuels and lubricants intended for the aforementioned means of transport, as well as to services referred to in Article 16, paragraph 3, of the VAT Decree (leasing, rental and similar), as well as related to custody, maintenance, repair and use services, including motorway tolls.
- The deduction varies depending on the actual procedural type:
- Acquisition type
- Deduction percentage
- Motor vehicle not used exclusively in the exercise of the business, art or profession: 40%
- Motor vehicle assigned for free use to an employee: 40%
- Motor vehicle assigned for use to an employee: 40%
Source: commercialistatelematico.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
