The arrival of the month of April is synonymous with the Income Statement, which this year began on the 6th. Specifically for the self-employed, this is a key period within the fiscal calendar.
In the case of leasing, A number of aspects must be taken into account to know if it can be deducted or not a contract. For this reason, Northgate Renting Flexible, a company specialized in the field of mobility and a pioneer in the provision of flexible renting services, has compiled all the necessary information on renting for the self-employed when presenting the Income Tax Return.
Can I deduct VAT from renting as a self-employed person?
Yes, it is possible to deduct VAT from renting by being self-employed in percentages ranging from 50% to 100%, as long as it is shown that the vehicle is intended for professional work. The applicable deduction depends on the use made of the vehicle and, although it is the self-employed person who declares what they use it for, the Tax Agency reserves the right to check whether the vehicle is used for professional or personal purposes.
For example, checking if the vehicle is labeled or if it is parked on the premises of the work center when the work activity is finished are some of the most common indications to demonstrate that it is for professional use. The type of vehicle can also have an influence, making it easier to associate industrial vehicles with a professional activity.
How can I deduct renting as a self-employed person?
There are several ways to ensure that the payment of a car rental entails a tax credit, but it is usually carried out through the Income Tax on Individuals when making the Income Statement and indicating it as a deductible expense. But for this, the user must demonstrate in all cases that the use of the vehicle is exclusively professional, because in this case, a partial deduction cannot be made, as is the case with VAT.
What other deductions are there?
In addition to these benefits of renting taxation, the self-employed can not only deduct the service itself, but also have deductions associated with travel for work activity.
For example, in the general deductions established by the Tax Agency, fuel costs or parking in car parks are included. In the case of deductions for gasoline consumption in renting vehicles, the self-employed can deduct up to 50% of this expense, provided they demonstrate that the trips have been for work. These deductions also apply to the payment of parking in car parks exclusively related to professional activity. For this, it is essential that the receipts that demonstrate these payments are presented.
From Northgate Renting Flexible they point out that these tax advantages can be a interesting factor for the self-employed to take advantage of this type of rental. This joins the other advantages offered by flexible renting, thanks to the flexibility that allows vehicles to be changed or returned at any time, without facing penalties, in addition to adapting to the company’s activity by providing the necessary vehicles at all times. . It is, therefore, a series of benefits that for these self-employed workers can make a difference, since with flexible renting it is easier to adapt to the activity of the company
