2. Delivery or use of motor vehicles

• In the event of delivery of the vehicle

In this case, the remuneration will be valued at the cost of acquisition of the vehicle for the employer, including the expenses and taxes that tax the operation. Consequently, the entire VAT paid must be included, regardless of whether or not it is deductible for the payer.

• In the event of use of the vehicle

In the case of use, it is necessary to distinguish:

Vehicle owned by payer : The value will be ## 20 percent of the annual acquisition cost of the vehicle for the employer, including the expenses and taxes that tax the operation.
Vehicle not owned by the payer : The value will be 20 percent annually on the market value, including expenses and taxes inherent to the acquisition, which would correspond to the vehicle if it were new.
Vehicle belonging to companies whose usual activity is the transfer of use of motor vehicles: the valuation may not be less than the price offered to the public of the service in question.

Reductions applicable to the valuation of energy-efficient motor vehicles

Regulations: Art. 48 bis Regulation IRPF

In the cases a, b and c above of transfer of use of vehicle, the resulting valuation may be reduced by up to it comes to vehicles considered energy efficient, under the terms and conditions indicated below:

In the case of vehicles considered to be energy efficient because they comply with the Euro 6 emission limits set out in Annex I to Regulation ( EC ) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type-approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information, the valuation of the income in kind for the use may be reduced by the following percentages :

15% reduction of the resulting amount, when the vehicle meets the following conditions:
1. Its official CO emissions² do not exceed 120 g/km and
2. The market value that would correspond to the vehicle if it were new, before taxes, is not greater than 25,000 euros
20% reduction of the resulting amount, when the vehicle meets the following conditions:
1. Its official CO emissions² do not exceed 120 g/km
2. Whether they are hybrid vehicles or those powered by internal combustion engines that can use alternative fossil fuels (autogas –LPG– and Natural Gas) and
3. The market value that would correspond to the vehicle if it were new, before taxes, is not greater than 35,000 euros
30% reduction of the resulting amount, when it concerns any of the following categories of vehicles:
1. Battery electric vehicle (BEV).
2. Extended-range electric vehicle (E-REV).
3. Plug-in hybrid vehicle (PHEV) with a minimum range of 15 kilometres, provided that, in this case, the market value that would correspond to the vehicle if it were new, before taxes, is not greater than 40,000 euros.

• In the case of mixed use of the vehicle (company purposes and personal purposes of the employee)

In the case of mixed use of the vehicle, for company purposes and for the employee's personal purposes, the taxpayer will only be charged with remuneration in kind to the extent that the latter has the power to use the vehicle for personal purposes, regardless of whether or not it is actually used for such purposes. Ultimately, in these cases, the determining parameter for the assessment of remuneration in kind must be the availability of the vehicle for private purposes.

Covid-19: the transfer of the use of the vehicle by the company to the worker during the state of alarm due to the coronavirus health crisis constitutes for the latter a performance of work in kind, since, firstly, the state of alarm does not imply the immobilization of the vehicle but the limitation of the movements to those permitted in said state and, secondly, the imputation to the taxpayer of the remuneration in kind derived from obtaining the right to use the vehicle is to the extent that the taxpayer has the power to use the vehicle for private uses, regardless of whether or not there is an effective use for such purposes.

Example:

Mr. APL He has a car loaned to him by his company which he uses for work and personal purposes. Taking into account the nature and characteristics of the functions performed by the employee in his company, the percentage of use of the vehicle for company work purposes is estimated at 30%. The company cost the vehicle 30,000 euros. The car is a hybrid (non-electric) vehicle that complies with the Euro 5 and Euro 6 emission limits provided for in Regulation ( EC ) No 715/2007.

Determine the amount of the remuneration in kind corresponding to the use of the car in the year 2020 if the payments on account made by the company in said year for this remuneration in kind, which have not been passed on to the employee, have amounted to 1,300 euros.

Solution:

Use of the car for work purposes (30 percent): It does not constitute remuneration in kind.

Availability of the car for private purposes: It constitutes compensation in kind, regardless of whether or not it is actually used for private purposes (100 percent) – (30 percent) = 70 percent.

Value of remuneration in kind:

Total annual valuation before reduction: (20% s/30,000) = 6,000.00
Reduction for energy-efficient motor vehicles (20% s/6,000) = 1,200.00
Total annual valuation (6,000 – 1,200) = 4,800.00

Availability for particular purposes: (4,800 x 70%) = 3,360.00

Unreperformed income to account = 1,300.00

Total remuneration in kind ( 3,360 + 1,300 ) = 4,660.00

• In the event of use and subsequent delivery

In this case, the valuation of the latter (the delivery) will be carried out taking into account the valuation resulting from the previous use. For these purposes, the assessment of use must be estimated at 20% annually, regardless of whether the car has been fully or partially available for personal purposes.

Example:

Mr. AAP has had a company-owned vehicle at its disposal for personal use since 1 January 2017, which it acquired on that date for an amount of 23,000 euros. On January 1, 2020, the company will provide the vehicle to the employee free of charge.

Determine the amount of the remuneration in kind derived from the delivery of the motor vehicle in the year 2020, assuming that the payment on account made by the company in relation to said remuneration in kind, which has not been passed on to the worker, amounts to 4,300 euros.

Solution:

Vehicle Delivery Rating : (23,000 – 13,800) ⁽¹⁾ = 9,200
Unreperformed income on account = 4,300

Total remuneration in kind: (9,200 + 4,300) = 13,500

Note to example: The valuation of the delivery on 01-01-2020 must be carried out by discounting the valuation of the use corresponding to the years 2017, 2018 and 2019. This valuation is estimated at 20% of the annual purchase price of the car (23,000 x 60%) = 13,800 euros.