The VAT that a company must pay on the purchase of a fully electric motorcycle for use on business trips cannot be deducted, the AT said in its response to a request for binding information released on Monday.
At the origin of the issue lies a company active in the trade, import and export of gardening, agricultural and motorcycle machinery and equipment and their parts and accessories, which wanted to know whether it could recover the VAT spent on the purchase of an electric car, could deduct. motorcycle.
According to the taxpayer, the aforementioned motorcycle is intended for trips on behalf of the company “such as trips to the post office, depositing valuables and incidental purchases of small value”.
Even though VAT is a tax intended to tax the end consumer and therefore allows deduction of the tax for intermediate transactions, the Tax Authorities (AT) emphasizes that this right of deduction does not apply in the present case.
The VAT Code establishes several limitations on the right of deduction, providing, for example, that only tax imposed on goods or services acquired, imported or used by the taxpayer to carry out transactions involving the transfer of goods and services can be deducted. of services subject to tax and not exempt.
In addition to this limitation, there are others related to the nature of goods and services and justified by the fact that their nature indicates that they are not essential for productive activities or that they “can easily be used for private consumption, however also.” whether it is included in the productive activity”.
“If the purchase of a motorcycle is at issue, the operation will find provision in the exclusion [do direito à dedução] indicated above and as a rule according to which the tax on the purchase of motorcycles does not give a right to deduct”refers to AT’s response, as it also does not fit in cases where this right of deduction is excluded and which fall under the VAT Code.
This is because, says AT, even in these situations the “The legislator has chosen to allow the right to tax deduction only in situations where the purpose of the activity is the sale or exploitation of these goods, with the exception of situations where, despite the fact that these goods are used and indispensable for the activity of the taxable person, are not the object of his activity”.
Therefore, the tax on the purchase and/or use of the motorcycle in question, even in the case of a fully electric vehicle, does not give any right to deduct.
Source: DN
