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Taxes and cars partly used for business?

Taxes and cars partly used for business?

Old Jun 29th 2010, 9:07 am
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Default Taxes and cars partly used for business?

Accounts.
Can anyone tell me how do Hacienda usually deal with cars partly used for business? By mileage or some other way?
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Old Jun 29th 2010, 11:28 am
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Default Re: Taxes and cars partly used for business?

Originally Posted by angiescarr
Accounts.
Can anyone tell me how do Hacienda usually deal with cars partly used for business? By mileage or some other way?

It is worked out using a specific formula, the size of the engine, the load capacity of the "body of the car". If it is classed as being fuel efficient, the number of occupants that normally use the car during business hours as apposed to the number of occupants that use it for leaisure, and of course the type of bussiness that you use the car for.

If the car has a sunroof, then it is in a different tax band, and any extras life a CD player also figure. If you have those little drinks holders in the back and a plastic Jesus hanging from the rear view mirror you have have to pay more.




In other words, I dont know................

Last edited by JLFS; Jun 29th 2010 at 11:50 am.
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Old Jun 29th 2010, 11:50 am
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Default Re: Taxes and cars partly used for business?

Originally Posted by JLFS
It is worked out using a specific formula, the size of the engine, the load capacity of the "body of the car". If it is classed as being fuel efficient, the number of occupants that normally use the car during business hours as apposed to the number of occupants that use it for leaisure, and of course the type of bussiness that you use the car for.

If the car has a sunroof, then it is in a different tax band, and any extras life a CD player also figure. If you have those little drinks holders in the back and a plastic Jesus hanging from the rear view mirror you have have to pay more.


Some of the entrepeneurs, with multinational clients that post on this forum, will be able to tell you.
Thanks JLFS. But I want to know how to put car use in my tax return. I use my car about 50% for business. And maintainance? For instance I've got to put 2 new tyres on this month costing 75 euros each. So, do I put down petrol for specific trips and and half maintainance costs in my outgoings, or do I put down the mileage at so many cents per mile?.
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Old Jun 29th 2010, 12:06 pm
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Default Re: Taxes and cars partly used for business?

Originally Posted by angiescarr
Thanks JLFS. But I want to know how to put car use in my tax return. I use my car about 50% for business. And maintainance? For instance I've got to put 2 new tyres on this month costing 75 euros each. So, do I put down petrol for specific trips and and half maintainance costs in my outgoings, or do I put down the mileage at so many cents per mile?.

Hi Angie, I only posted so that you would not be q voice shouting in to the emptyness of a deserted forum.........................

Could your gestor help, because he should be able to tell you the most efficient tax saving way for your particular circumstances.
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Old Jun 29th 2010, 12:16 pm
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Default Re: Taxes and cars partly used for business?

Originally Posted by JLFS
Hi Angie, I only posted so that you would not be q voice shouting in to the emptyness of a deserted forum.........................

Could your gestor help, because he should be able to tell you the most efficient tax saving way for your particular circumstances.
Aww Thanks:-)
Haven't got myself a gestor or contable yet. Just coming up to my first quarter as a Spanish company. Wondering if I could handle it myself online now they have systems in place (I think). But since I'm pretty hopeless with figures and rather scared of authority;-) I want to get myself armed with the necessary info in advance. My paperwork is just a box of bits of paper. Always has been. I had a wonderful and very understanding accountant in England. I think he may be irreplaceable!
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Old Jun 29th 2010, 12:34 pm
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Default Re: Taxes and cars partly used for business?

We got good advice about using our car for the company...things like age, if it is sign written or even the type of company you run etc etc all come into the equation.
The advise I can give to you is……………….Tax is complicated here...get a Gestor and have them sort it out for you. To save a few 100€ for one may mean paying a lot more in the end.
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Old Jun 29th 2010, 12:37 pm
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Default Re: Taxes and cars partly used for business?

IMO You will need the services of a gestor.

AFAIK Some activities are not even allowed to offset any bills for vehicle use wear and tear when using same vehicle for business and leisure.

Petrol diesel bills have to have your NIE number or CIF number on them or cannot be used. Trips have to be meticulously logged etc etc.

I never saw a Spanish person with bills chucked in a drawer or box for someone else to sort out, it would appear to be a British thing

Be aware that Hacienda are ruthless and unforgiving, fines and penalties are enormous.
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Old Jun 29th 2010, 12:43 pm
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Default Re: Taxes and cars partly used for business?

Originally Posted by whitelinen
IMO You will need the services of a gestor.

AFAIK Some activities are not even allowed to offset any bills for vehicle use wear and tear when using same vehicle for business and leisure.

Petrol diesel bills have to have your NIE number or CIF number on them or cannot be used. Trips have to be meticulously logged etc etc.

I never saw a Spanish person with bills chucked in a drawer or box for someone else to sort out, it would appear to be a British thing

Be aware that Hacienda are ruthless and unforgiving, fines and penalties are enormous.
The whole having a receipt with your CIF/NIE is so annoying. There are many expenses I would claim in the UK that I can't be bothered to claim in Spain because of that. But I am sure it really does cut down on fraud.
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Old Jun 29th 2010, 12:44 pm
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Default Re: Taxes and cars partly used for business?

Having had a Spanish business (with a Spanish partner) - I think anyone trying to do their own accounting is frankly mad.

You need professional qualified help to ensure you are in full compliance with all of the laws otherwise you could find yourself in big trouble with heavy fines.

It's complicated enough in the UK when you understand the language here (even with some Spanish) it is impossible.

And as someone else said they will probably save you more than they cost you.
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Old Jun 29th 2010, 4:35 pm
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Default Re: Taxes and cars partly used for business?

I would totally agree - personal tax is easy in Spain to do yourself but company tax or claiming allowances such as cars etc is a potential minefield.

In the UK I always used an accountant for tax although I could probably do it myself but the Revenue are more prepared to accept tax declarations from qualified people than from individuals - I imagine it is just the same in Spain.

It also means that you have someone between you and Hacienda if something they don't like crops up - much better than having to deal with them yourself.
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Old Jun 29th 2010, 4:55 pm
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Default Re: Taxes and cars partly used for business?

Thanks Fred -

I guess the bottom line is - even the Spanish would not do it themselves but use a gestoria/contable - and to be very honest I don't think they (AEAT) will be impressed if the foreigners try a bit of DIY! (Maybe for personal tax but not for a business)

Anyway that is my opinion (been here 10 yrs) take it or leave it.
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Old Jun 29th 2010, 5:10 pm
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Default Re: Taxes and cars partly used for business?

Yes, and if things get tricky then the professional is used to negotiating a reasonable settlement - no way can an individual do that as effectively.

I had an issue with tax regarding building licences - I could have handled it personally but the gestor saved me 80% of the tax.

I think he went to school with the tax inspector!
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Old Jun 29th 2010, 5:45 pm
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Default Re: Taxes and cars partly used for business?

Originally Posted by spainrico
Thanks Fred -

I guess the bottom line is - even the Spanish would not do it themselves but use a gestoria/contable - and to be very honest I don't think they (AEAT) will be impressed if the foreigners try a bit of DIY! (Maybe for personal tax but not for a business)

Anyway that is my opinion (been here 10 yrs) take it or leave it.
I didn't realise that that was SO normal. I thought people used a gestoria because of the level of illiteracy in the Pueblos and lack of Spanish language in many expats. But in a way I'm relieved to hear it. Even though we're V short of money at the moment I can justify the expense if 'that's the way it's done'. :-)
Really buggered by the receipts having to have your NIE thing. Is that ALL receipts. The post office and everything?
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Old Jun 29th 2010, 8:59 pm
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Default Re: Taxes and cars partly used for business?

Listen Angie - Spain is all about 'enchufa' you may think this is unfair but my (I am English) father taught me only 1 thing - "It's not what you know - but who you know" and that is as good as an translation as you will get.

read "Ghosts of Spain" Giles Tremlett.

Don't meet Spain head on - you will lose. But they are lovely people - I know I have just spent 2 hours watching the World Cup in a bar with them - they insist I am there on Saturday.............
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Old Jun 29th 2010, 10:24 pm
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Default Re: Taxes and cars partly used for business?

Originally Posted by angiescarr
I didn't realise that that was SO normal. I thought people used a gestoria because of the level of illiteracy in the Pueblos and lack of Spanish language in many expats. But in a way I'm relieved to hear it. Even though we're V short of money at the moment I can justify the expense if 'that's the way it's done'. :-)
Really buggered by the receipts having to have your NIE thing. Is that ALL receipts. The post office and everything?
Yes, you need a proper factura for everthing. But that's no big deal!

Do you normally use the same petrol station? You only give them your details once and then they have you in their computer so just churn out the factura each time you go (assuming you don't go to some old pen and paper job out in the campo!).

The Post Office are easy too. You only have to ask for the factura and they happily give it to you.
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