A road freight business uses the objective assessment method to determine its net income. During the year, three trucks were used in the business throughout the year. The owner personally used one truck for all 365 days; the second was used for 302 days, corresponding to the period when its two drivers were registered with Social Security; and the third was used for 216 days, corresponding to the period when its three drivers were registered with Social Security. How should the vehicle load capacity module be calculated?
Historical consultation based on binding DGT rulings V0220-08 (6 February 2008) and V0130-05 (2 February 2005).
Instruction 7 provides that, when determining annual net income, the average of the modules is calculated by reference to hours of actual work, in the case of employed and self-employed personnel, or by reference to days of actual use, operation or installation in all other cases. Electricity consumption and distance travelled are measured, respectively, by kilowatt-hours consumed and kilometres travelled. For this purpose, days allocated to weekly rest or holidays in the business are also counted as days of use. Accordingly, the vehicle load capacity module must be quantified according to the number of days each vehicle used in the business.
Here, the taxpayer states that the vehicles assigned to the business were not used every day. The vehicle load capacity module is therefore calculated by adding the load capacities of each vehicle, prorated according to the days each was actually used. Those days of use include weekly rest days and holidays in the business.
Whether the vehicles were not used every day is a question of fact on which the Directorate-General for Taxes cannot rule. This circumstance must be substantiated, where applicable, before the tax management and inspection authorities.
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