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No VAT invoice with new car

  • 15-08-2022 5:44pm
    #1
    Zenify
    Registered Users, Registered Users 2 Posts: 862 ✭✭✭


    I just bought a brand new car from a reputable car garage. It was bought as a standard passanger vehicle but will be used for both personal and business use. I am a sole trader and VAT registered. The car is in my name and so is my VAT registration. I'm aware that I cannot claim back all the vat as its not a commercial vehicle but the garage says they only provide VAT invoices for commercial vehicles. Does this sound legit?



Comments

  • #2
    c_keogh
    Registered Users, Registered Users 2 Posts: 4 ✭c_keogh


    Hi Zenify,

    There are two points to note about your query:

    Firstly, the requirement to issue a VAT invoice is contained in section 66(1)(a), Value Added Tax Consolidation Act 2010. It only requires an Irish business to issue invoices to certain categories of people (including other VAT registered businesses, public bodies and people in other EU countries etc). Issuing VAT invoices to other people is optional.

    Obviously, in your capacity as a sole trader, you are a VAT registered business. Therefore, you might have some arguments to insist on an invoice. However, from a practical perspective, if the garage believes that they have supplied the car to you in your capacity as a ‘normal’ non-business person, then you are unlikely to convince them to issue a VAT invoice to you.

    Secondly, there are certain types of expenses for which VAT cannot be reclaimed. One such expense is the purchase of a non-commercial vehicle by a business that is not a motor dealer, leasing company or driving school etc (see section 60 (2)(a)(iv), Value Added Tax Consolidation Act 2010). Therefore, unless you are one of these types of businesses you cannot claim any of the VAT back (even if you had bought the car exclusively for use in your business).

    I am sorry if this is not the answer you were hoping for!



  • #3
    Zenify
    Registered Users, Registered Users 2 Posts: 862 ✭✭✭Zenify


    Hi c_keogh,


    Thanks for the help.

    Am I not able to claim 20% of the business use VAT?

    Partial recovery of VAT on qualifying passenger motor vehicles | Revenue

    https://www.google.com/url?sa=t&source=web&cd=&ved=2ahUKEwjWu8OExcz5AhU9QUEAHaosCEsQFnoECBcQAQ&url=https%3A%2F%2Fwww.revenue.ie%2Fen%2Ftax-professionals%2Ftdm%2Fvalue-added-tax%2Fpart03-taxable-transactions-goods-ica-services%2FGoods%2Fpartial-recovery-of-VAT-on-qualifying-passenger-motor-vehicles.pdf&usg=AOvVaw1gPxMgaVhDUSjwG0NPHHQz



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