VAT on cars question

sauveur · Apprentice Joined: 22 Apr 2007 Posts: 5

Hello everybody! My name is John Myers and I work as a financial director in one Distribution Company in Blackpool. At the moment we are buying some new vehicles for our company, both business and commercial. I have a VAT on cars question. I know that when you buy a car, you cannot reclaim VAT. Does anybody know if there are some special conditions concerning commercial and business cars? Thank you in advance.

justino · Apprentice Joined: 07 Dec 2005 Posts: 3

Hello John. As far as I know, there are some options where you can get VAT back. I know for sure that it applies to taxi drivers, motor dealers, driving schools and so on. In some cases you can recover VAT if the vehicle is not for private use, but it’s better to contact Revenue service to check that out. I think that on commercial vehicles (van, lorry etc) it is manageable. Another thing is that if you lease such kind of vehicles, you can get 50% of the VAT back. In this case you can also recover input tax on maintenance and other services. One other thing. If your company pays for the fuel used in the vehicles for both business and private purposes, VAT is applicable. It depends on the engine capacity a fuel type and is called fuel scale charge. If the company pays fuel used only for business services, this VAT can be reclaimed. That is all I know. I hope it is of some use.

VAT on cars question

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