We are at the time when it is time to make the 2022 Income Tax declaration and all help is little to try to recover part of the money that goes to us in taxes. The purchase of certain material goods can be used to deduct taxes, but the conditions are usually demanding. We tell you how to deduct the purchase of the car in the 2022 Income Statement.
We are sorry to tell you that it is something that you can only do in two very specific circumstances: if it is going to be used for a professional activity or if the vehicle is for a person with reduced mobility. In addition, the conditions in both cases are different from each other.
In the event that the car is purchased to carry out a job, as could be the case of a self-employed person who needs the car to get around to carry out their work, it is possible to deduct up to 100% of the VAT on the cost of the vehicle.
And not only that, the same can be applied to VAT on fuel, something that, taking into account the price of both gasoline and diesel, is of great help.
In addition, the self-employed who have a car in rental format, can deduct 100% of the net fees.
In the case of a car purchased for a person with reduced mobility, it is not possible to deduct 100% of the VAT on the acquisition, the law stipulates that it is only up to 50%.
It must also be taken into account that in these purchases the VAT applied to the purchase is 4%, not 21% as usual, so the savings will not be as high as in the other case.
Finally, some groups such as taxi drivers or carriers can deduct all VAT on the fuel they refuel.
Source: Business Insider
