ARTICLE 21: REQUIREMENTS TO CREDITALBE THE VAT RELATED TO EXPENSES INCURRED IN CONNECTION WITH THE USE OF A CAR OWNED BY A PERSON WHO PROVIDES SUBORDINATE PROFESSIONAL SERVICES

     

    For the purposes of the provisions established by the Law on accreditation (LIVA: Art. 1), taxpayers may credit the transferred tax in connection with the expenses incurred for fuel, oil, services, repairs and spare parts, when they are made in connection with the use of a car owned by a person who provides subordinate personal services and are the result of a trip made to carry out activities of the taxpayers. In these cases, the crediting may be made in the proportion that of the total expenses incurred represents the part that is deductible for the taxpayer, for the purposes of the Law on Income Tax (Ley del Impuesto sobre la Renta).