KM rate

[Kathy]

Does anyone know the official km rate for using your own car for business?

[Bongtrees]

I was always told that this was not allowed, indeed there are many occupations in Spain where a car is essential for business but that Hacienda will not allow any running costs, depreciation, IVA etc as a genuine business expense.

I expect someone will have something different to say but that is my experience from 7 years working in Spain and 5 gestors.

[Jool]

Hacienda will allow all vehicle costs IF you ONLY use it as a business vehicle (ie it has to be left at the place of work overnight and weekends etc and not used for going to and from work) and it is owned by the business and not an individual.

Our gestor told us if we log the km and state the reasons for the journey we can claim that as the mileage (kmage) and also that any additional vehicle insurance we have to allow professional use is also deductible...........

Its another Hacienda confusion like so many others.....and seems to be a very grey area with conflicting advice.

[Bongtrees]

So Jool, have you used your vehicle for business use how much is kmage?

[Jool]

No idea, only started doing so this quarter as did not seem worth the hassle or admin before of having to log all journeys etc.....but now things are tighter we are going to do it, will let you know.....I did ask what the official rate was and was told "depende" so make of that what you will!! Anything will be better than nothing.

[Kathy]

Ok so if you are freelance in Spain and live lets say, 100kms away from your client,
what Km rate would they expect you to charge them?

[Jool]

depende

on what I still don´t know, it was nigh on impossible to get a figure so I guess I will find out when we submit our quarterly accounts and see how much is deducted!