claiming VAT on business car

sally365

Hi,

I'm a sole trader would anyone know the requirements for claiming VAT on a business car ? Sadly my car has died and i badly need a reliable car to visit clients onsite.

Not the best start to 2014
Regards,
Sally

Immy

In general VAT cannot be reclaimed on a company car except in restricted circumstances

http://www.revenue.ie/en/tax/vat/leaflets/index.html#M go to M for motor vehicles and there is a leaflet to tell you when you can claim. Basically you can claim back 20% of the VAT if you use the car for 60% business purposes and it's category A,B or C for emissions (which would be a small car) and it's registered post 1 January 2009. You must have the car for 2 years or the credit will be clawed back.

You could claim back VAT on a commercial vehicle.

lakill Farm

buy either a commercial car van or maybe a 5 seat crew cab jeep?

remember to buy a diesel engine as you cant claim vat back on petrol (unless you buy and sell it as a trade)

ninty9er

Check with your accountant to see if you can claim VAT on rent/lease payments, might work out more cost effective than buying in that case.