SPANISH VAT (IVA) ON THE ASSIGNMENT OF COMPANY CARS TO EMPLOYEES

In their binding consultation of 15th November 2016 with number V4951-16, the Spanish Tax Authorities (DGT) have considered the input tax paid by a lawyer firm for renting a car used by one of their partners, partially for private purposes, to be 50% deductible.
This criterion seems to contradict former consultations made in 2011 and 2012 (e.g. V1379-11, V1466-11, V0856-12, V0891-12 or V0996-12) and applied in all recent tax inspections regarding this matter, where an input tax deductibility of 100% with the employee being parallelly charged with the corresponding VAT (according to his private use) was required.

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