In view of the problems that arise each year with respect to deductible expenses of the Economic Activities, the substance of the current criterion of both the Directorate-General of Taxes and the courts of Justice regarding the expenses that tend to generate more controversy are set out below.

Deductible expenses on supplies:

TEAC resolution 10 2015 September in unification of criteria:

a change of approach regarding supplies occurs, so it can:

  • Regarding costs Property: percentage criterion application surface used in development activity Total respect surface portion to determine costs of ownership of the housing.
  • Regarding expenses of supplies: in the impossibility of obtaining an objective criterion that allows to discern which part is used for the particular purposes and which for the development of an economic activity, the TEAC imposes a general rule: the deduction of those expenses of supplies is admitted for which the taxpayer proves the contribution to the developed economic activity.

In this regard, following the criterion of correlation of income and expenses a combined area criterion (%) arises with business activity days (Monday to Friday, not August, ...) and the hours when such activity in the property (daily 8h).

deductible expenses on the vehicle:

Tax Agency criteria:

For accepting the deduction of expenses incurred vehicle (acquisition, amortization, and other expenses) total involvement is required, Which implies that is used exclusively for the development of economic activity.

Even if you have two vehicles, it must prove the exclusive use of the same activity, ie the vehicle "sleep" in the office and only used to go visit customers, considering private use vehicle use to move from home to office.

This criterion is unexceptional respect a legally taxed vehicles assumptions:

  • Mixed intended for transport of goods.
  • Mixed for the carriage.
  • Destined to the professional displacements of the representatives or commercial agents.
  • Driving school.
  • Destined for the transfer of use with habitualidad and onerous.

Judgment of the Superior Court of Catalonia:

Is for the administration to try the private use of the vehicle, and this is more difficult especially when you have two vehicles.

This criterion of the total effect on the activity is also applicable to mobile telephony devices, computers ...

deductible expenses on meals and travel:

Tax Agency criteria:

They will be tax deductible when they come demanded by the development of the activity, provided they meet accounting requirements, providing ticket or invoice ...

Rests with the taxpayer the burden of proving the correlation.

Judgment of the Superior Court of Catalonia:

Is for the administration to prove that the recorded expenses are not related to the activity, making it easy on the assumption tickets for not being nominative, there are no tickets or can not be credited justification displacement (having a client or a prospective client - accredit mails, ...)

About the Author:

tax lawyer in Barcelona

Albert Pujol

DiG Lawyers