The law 104 provides facilities for handicapped guests also for the car : the income tax deduction , to ‘ VAT reduced to 4% and changes in ownership. Let’s find out everything that the taxman provides.
Auto Deductions Law 104
First of all we remind you that the bearers of 104 are people with a serious handicap certified by an ASL Commission. These individuals and their family members are entitled to various State and tax aid.
For example, do you know that the incentives for those who benefit from Law 104 can also be combined with the recent Eco-bonuses for electric vehicles (under 150 kW)? But this is just one of the many things to know about law 104.
If you have a dependent disabled person and you already benefit from this special legislation, you are also entitled to specific discounts for the car, whether for a purchase or a transformation, but not only.
Rules for car deductions law 104
All car deductions available with the 104 are obtainable only for the disabled person’s vehicle : the owner can be a family member, but this must be mainly available to the disabled person.
But now let’s see in detail the tax breaks:
- car tax exemption
- tax exemption on changes of ownership
- 19% personal income tax deduction on the purchase of the new one
- Reduced VAT at 4%
It is important to underline that these concessions for the auto sector and law 104 only concern:
- passenger cars
- vehicles with a total laden mass of less than 3.5 tonnes (or 4.5 tonnes if electric or battery powered)
- specific vehicles with special equipment
- 3-wheeled wheelchairs
- 3-wheeled vehicles for transporting people and things
- vehicles with a maximum of 9 seats, including the driver
- motor vehicles for mixed transport
- motorhomes with a special body and permanently equipped (maximum 7 people including the driver)
- motor vehicles for specific transport
Furthermore, the personal income tax deduction is 19% but is applied to the cost incurred and is applied to the maximum expenditure of € 18,075.99 .
The particular cases of the law 104 auto
To take advantage of the deduction by law 104 cars, the company that sells must issue a regular invoice with the indication of the reference law, different according to the cases (97/86 or 449/97, or 342/2000 or 388/2000).
Read also brumbrum ‘s commitment to the disabled and caregivers .
Remember also that it is only due once per vehicle during a four-year period from purchase ; to get it back first, the vehicle must be scrapped and then canceled from the PRA (Public Automobile Register).
Furthermore, in the event that the car is sold before 2 years of purchase, you will have to pay the difference between the tax due in the absence of concessions (22% / 4%): the only exception is the case in which the disabled who has new needs related to handicap, sells the vehicle to buy another one making new and different adaptations.