There are some important changes to the criteria associated with expenses for cars, entertainment, motorway tolls etc. at the Tax Office in Spain.
From now onwards, the Tax Office requires an explanation for each receipt, invoice or expense presented to ensure they are truly related to the activity.
They are particularly interested in cars and everything related to them (petrol, repairs, maintenance, etc).
They are analysing each claim and are being extremely strict and are rejecting them if they don’t conform. In some cases they are actually penalising people.
All companies and freelancers that include these expenses must justify that the use of the car is 100% for the activity of the company and is not for personal use.
It is very difficult to reach a justification of 100% unless you are a professional driver e.g. taxi, delivery driver, truck driver, commercial agent, etc. It is even more difficult when it comes to vehicles considered “luxury”.
The Tax Office generally agree to include 50% of IVA and expenses.
If the company’s activity does not require the use of a vehicle that percentage can be reduced to 0%.
From our point of view, we recommend you work within the above parameters and terms to avoid problems with the Tax Office.
Please do not hesitate to contact me if you require clarification.
Carlos Jiménez Dengra
Director general | Managing director
Urbanización Alhambra del Mar
Centro de Negocios Tembo
Bloque A Oficina 9
29602 Marbella (Málaga)
Tel +34 951 607 006
Fax +34 952 901 051
We are here you during these uncertain times and can help with all your accounting needs and questions.
We are working from the office and remotely and can always be contacted on +34 951 607 006 or +34 626 559 714. Email email@example.com – we are happy to participate in video calls via Skype or Facetime.
I have worked with Carlos and the team at ATA for 10 years or more and they have worked diligently to prepare my accounts and taxes promptly. They have always been on hand to discuss and advise any difficult questions I have had regarding taxes (business and personal) and complex Spanish employment laws.
Since meeting Carlos and the team at ATA I finally feel that my accounting needs are being looked after by a professional and efficient company. They are always at the end of the phone for any questions or queries that I have which are always answered in a very clear manner. I highly recommend their services.
My real estate company Aylesford Costa del Sol has been a client of ATA for over 10 years. Carlos and his team have always been there for us and their help and advice over the years has been invaluable. ATA are very professional and I appreciate the way they get things done in a speedy and efficient manner! I have no hesitation in recommending ATA to my clients.