Agencia Tributaria (Spanish Tax Agency) – Intensifying Controls

The Spanish Tax Agency has intensified its controls regarding deductible expenses in companies and sole proprietorships. All items recorded as expenses must be well documented, not only with official invoices.

– In general, all expenses must have a direct connection to the business.

– In the case of representation, the customer/project and the participants must be stated, among other things.

– Gasoline invoices must be verified with the destination, number of km, and the matter in question. It is therefore not sufficient to submit only a gasoline receipt.

An alternative to gasoline invoices is to claim mileage allowance, currently €0.19/km (tax-free), and keep a logbook containing all the information as above. We have developed a template that you are welcome to use.

If the necessary documentation is not available, the deductions risk becoming invalid in the event of a tax audit.

If you have any questions about this or anything else related to your business, please feel free to contact us at Global Accounting.