On 20 October 2026, the Council for the Defense of the Taxpayer (Consejo para la Defensa del Contribuyente) published a report acknowledging that self-employed individuals face excessive obstacles in deducting common business expenses such as vehicles, mobile phones, meals, and telework supplies. The report urges the Tax Agency to establish clear, objective criteria to replace the current case-by-case discretion that creates legal uncertainty and litigation.
Key Takeaways
- Vehicle Expenses: The 50% VAT deduction rule for cars is accepted, but fuel, repairs, and parking are routinely denied without separate proof of exclusive business use per transaction.
- Telework Supplies: Deduction of home office utilities (electricity, internet) lacks a standardized allocation method, leading to arbitrary rejections.
- Policy Recommendation: The Council proposes regulatory safe harbors (e.g., fixed percentages) to simplify compliance and reduce disputes.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement