VAT-registered individuals: tax relief on cars for commercial agents increases
The maximum allowable cost for the tax deduction is set to be updated; this figure has remained unchanged since the limit was set in 1997, in order to address the rises in car and fuel costs
Key points
The maximum threshold for the tax relief on cars purchased or leased by commercial agents is set to be updated, with a particular focus on the green transition. The 2027 Budget Bill will incorporate the requests of trade associations, which just a few days ago, during a meeting with the Deputy Minister for the Economy, Maurizio Leo, argued for the need to update the maximum threshold of €25,822.84. This threshold has remained unchanged since 1997, when it was set at 50 million lire and was subsequently simply ‘converted’ into euros without any adjustment.
Anchoring the green transition
The 2027 Budget Bill introduces an increase in the maximum cost from 25,882.84 to 35,000 euros, and raises the percentage of deductibility for costs relating to purely electric battery-powered vehicles and hybrid vehicles from 80 per cent to 90 per cent. As for leasing, the threshold rises to €5,164.57. This update is linked to the need to purchase or lease green vehicles, i.e. those with a lower environmental impact. This mechanism therefore combines the need to adjust the tax treatment of this category – where, despite an unchanged maximum threshold, vehicle costs have risen significantly over time – with the aim of promoting a green transition of the vehicle fleet.
The impact on 156,000 vehicles
The impact will affect a potentially very large group of 200,000 agents, who handle a total turnover estimated at around 500 billion euros, equivalent to 25 per cent of Italia’s GDP. According to the figures in the technical report, the issue of the increase in the maximum deductible cost affects around 156,000 vehicles.
The economic sustainability of the business
The issue, which is now addressed by the Budget Bill, is closely linked to rising fuel prices and the overall increase in transport costs, which has affected all motorists and poses a problem of financial sustainability for sales agents. Given the very heavy reliance on cars for work, the rises in fuel prices have made it much more difficult to continue their business activities.
