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Non deductible vat on passenger cars

trg · 2014-01-08 20:20:59

Hi, I understand that vat on hired cars registered before 2008 is not refundable in vat return. This makes it a pure cost. My question is.....is this cost allowed as deduction for income tax? Say the rent is €100 + 23% vat = €123. I can't claim the 23 as vat refund therefore the total cost for the business is €123. Is the…

08-01-2014 8:20pm

#1

trg

Registered Users, Registered Users 2 Posts: 378 ✭✭

Join Date: March 2010

Posts: 340

Hi,
I understand that vat on hired cars registered before 2008 is not refundable in vat return.

This makes it a pure cost.

My question is.....is this cost allowed as deduction for income tax?

Say the rent is €100 + 23% vat = €123.
I can't claim the 23 as vat refund therefore the total cost for the business is €123.

Is the €123 allowed as a deduction against taxable profits?

Thanks

0

Comments

#2 08-01-2014 10:05pm

Legend100

Registered Users, Registered Users 2 Posts: 736 ✭✭✭

Join Date: June 2008

Posts: 718

yes

where VAT cannot be reclaimed, the total expense (VAT inclusive) is a deductible business expense assuming the expense was incurred for business purposes

0