This income statement It’s a process millions of Spaniards have to go through. before 30 June each year. Inside campaign 2023 rentIt’s very important to know How can the purchase of a vehicle affect your accounts with the Treasury?. In this text, tax implications and deductions from buying a car available if you are an employee, self-employed or a company.
Do I have to declare that I bought a car?
As a general ruleit is not necessary to declare the purchase of a new or used car, because the relevant taxes (VAT, Registration and Circulation Tax) are payable at the time of purchase. ButIn some cases, it is appropriate to include the purchase in the declaration. personal income tax to take advantage of discounts Applies to individuals, self-employed or companies.
Deductions for employees
If you are an employee and have bought a new car, In general, you cannot deduct costs associated with the purchase.. However, there are some exceptions:
- Persons with a disability greater than or equal to 33%: It can be deducted up to 4% of VAT paid on the purchase of the vehicle and is exempt from Registration Tax and Mechanical Traction Vehicles Tax (IVTM).
- large families: Although VAT deduction is not applied, they can deduct up to 50% of the Registration Tax.
Deductions for self-employed
This deductions applicable to Self-employed people vary by business activity:
- Freelancers committed to transportation (taxi drivers, VTC drivers, carriers, driving schools, etc.): they can deduct up to 100% of VAT as well as fuel and maintenance costs, provided that the vehicle is only used as a business vehicle.
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WITHfreelancers not related to transportation: they can deduct up to 50% of the depreciation, interest and VAT, and up to 50% of the fuel price, provided that it is only used for business purposes.
Deductions for companies
If you are an employee and drive a company-owned vehicle, the company may deduct an annual percentage of the cost of purchasing the vehicle, including costs and taxes. This is serious operation. However, if the vehicle is also used for personal purposes, it must be declared as compensation in kind.
Assistance with MOVES plan and taxation
Help of the MOVES plan The purchase of electric vehicles or the installation of charging poles should be included in the income tax return as a capital gain.. The amount payable will depend on the amount of the benefit, the applicable tax rate and the general tax base.
In summary, it is important that you know the tax deductions and tax consequences associated with vehicle purchases when creating your 2023 Income Statement. If you are an employee, self-employed or a company, be sure to review the deductions that apply to you. status and to include them correctly on your personal income tax return.
Recommendations for 2023 Income Statement
To ensure a successful return and maximize tax deductions, we recommend:
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Carefully review the draft return provided by the Tax Office, as it may contain errors or not include deductibles.
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Consult a tax professional or OCU for personalized advice and avoiding errors in the return.
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Take into account the deadlines set by the Tax Office for submitting returns and claiming the corresponding deductions.
The purchase of a vehicle can have tax implications. Income statement 2023. Depending on your job and personal situation, you may be eligible for certain tax deductions. Remember to review and prepare your personal income tax return to take full advantage of these tax benefits and comply with your tax obligations.
Make sure you take full advantage of the tax deductions on the 2023 Income Statement and avoid unpleasant surprises. Find out the tax implications of buying a vehicle and optimize your accounts with the Treasury!