What is the definition of a lorry?
These are vehicles intended to carry objects and people, fit for the use or transport of said objects (Article 54, paragraph 1, letter d) of the Highway Code).
Can the costs incurred in the case of a vehicle registered as a lorry always be deducted in full?
No, there are some elements that affect the full or partial deductibility, regardless of how the vehicle has been registered.
What criteria should be applied to equate a vehicle registered as a lorry to a car?
(Tax Authority Provision no. 181492 of 06/12/2006)
The elements for the verification can be seen from the reading of the lorry log book. The lorry cannot benefit from full deduction if the log book states all the following indications:
Registration as N1;
F0 (f zero) bodywork code;
Four or more seats permitted for driver and passengers.
If all three the above characteristics are fulfilled, the calculation must be performed by using the formula given in the provision, namely:matriculation =kW = engine power expressed in kilowattsP = vehicle capacityMc = total volumeT(t) = calibration expressed in tonnes
If the ratio is < 180, the vehicle can be considered as a physical lorry, hence the costs incurred are 100% deductible (and VAT can be 100% deducted).
If the ratio is >= 180, the lorry must be considered for tax purposes as a car and the deduction will depend on how it is used.
For VAT purposes, in what cases is full deductibility permitted?
Vehicles used for the mixed transport of people and platform bodied or boxed with deep cabin or van with or without windows with an engine of more than 2,000 cubic centimeters or diesel engine in excess of 2,500 cubic centimeters (referred to as "luxury goods listed in table B) of Italian Presidential Decree no. 633/42), which are the object of the company' s business; the burden of proof lies with the company. (Article 1, paragraph 261, letter e) of Italian Law no. 244/2007 (the 2008 Financial Law).
Vehicles used as instrumental assets;
Vehicles for public use;
Business agents and representatives.
For VAT purposes, in what cases is partial deductibility permitted?
Vehicles used by professionals;
Vehicles for mixed use;
Vehicles not assigned.
In all these cases, VAT is 40% deductible.