If you have received aid to buy a car, you should know this

On April 7, the Income 2020 campaign. You can now make your income tax return for this strange year 2020, and request your refund, if it does not pay you. In addition to the complexity added by ERTEs, unemployment or aid to the self-employed, there is the added complexity of government plans to help buy cars. The grants received from the MOVES II Plan and the RENOVE Plan are subject to tax and you must take them into account if you do not want to have a “scare” in the coming months.

That “scare” is a letter from the Tax Agency, in which the opening of a sanctioning file is communicated because of not having declared state aid for the purchase of a new car. As you know, these grants have been able to have a significant amount: up to 5,500 euros if we have bought an electric car and we have decided to scrap our old car. However, the bulk of the aid granted has been from the RENOVE Plan, and has ranged between 400 euros and 1,000 euros, depending on the IDAE efficiency of the vehicle purchased.

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Aid for the purchase of cars is taxed as capital gain and increases our tax base.

Although the aid we have received from the State is only 400 euros, we must be aware that this type of aid are always subject to taxation. Specifically, taxed as capital gain in the income statement, just as the profit from the sale of shares or the donation of a property to a relative would do. When we request the draft from the Tax Agency, in many cases, these grants are not included in our tax data, and must be entered manually.

Many citizens, due to ignorance or confusion, forget to include this capital gain, and end up paying a large fine because of this mistake – to which is added the need to make a complementary declaration with the error corrected, in addition to surcharges and interest. for delay. An unflattering outlook. Capital gains are taxed at 19% for the amounts of aid for the purchase of cars, and they can tip the balance of a balanced statement toward “pays off” with relative ease.

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They must always be declared, even if their amount is low. It will be much more expensive not to do it.

If you have doubts with the income statement and the calculation of these aid, we recommend that you request the help of a tax professional. Again, a service whose cost more than compensates for the potential bad drink that can avoid us.

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