Sometimes, the self-employed decide to acquire a company car without fully knowing the advantages that this decision can bring them.
The first thing you must take into account is the expense you want to make when buying a car. For this, you must know that buying a company car since 2015 is cheaper. The tax incentives that the self-employed receive for buying a company vehicle obtain an improvement of up to 30% on the personal income tax according to the type of vehicle and its emissions.
Having a company car also gives you another way to advertise your business. Vehicle logo wraps allow you to advertise your services or products whenever you’re driving around in public. This effective marketing tool is used by most businesses. The two main advantages that you obtain as a company when buying a vehicle, is the deduction in the VAT and in the IRPF.
A self-employed person can deduct up to 50% of VAT on the purchase and maintenance of their company car. However, this is not as simple as it sounds, because in order to reduce the VAT you have to be able to demonstrate that the car is used for the development of the economic activity of the company.
As individuals you can also benefit from the purchase of a car for the company, since, normally, when buying a vehicle for your own company, it is usually used for private matters , so this benefits you when it comes to giving back in kind the Private use, as we have seen in the previous example.
However, the acquisition of a car for the company also allows you to reduce up to 50% VAT expenses on fuel and 50% VAT on the repairs and maintenance of your company vehicle. All this must always be proven as a necessary expense for the development of our professional activity with your company vehicle.