VAT on commercial vehicle

DonalB1

hi all,

currently in the market for a 2 seater jeep. My father is vat registered but has not availed of any vehicle through this.

is it possible for me to purchase a vehicle in his name (with his permission of course) for 30k, pay the 23% VAT on top and somehow claim it back?

User1998

Your Dad would be committing a serious case of VAT fraud and tax evasion if he done that.

Whocare

https://www.boards.ie/discussion/2058359958/vat-on-commercial-vehicle

Of course you can but like you said it be Registered in his name and insurance just be put down as name driver but most Commercial policies are open driver 25to70

Whocare

https://www.boards.ie/discussion/comment/122388553#Comment_122388553

Yeah but at end of day no one will care

Eggs For Dinner

Commercial insurance policies are issued on the basis of " use in connection with the INSUREDS business". It wouldn't cover the business use of any named driver

Whocare

https://www.boards.ie/discussion/comment/122389010#Comment_122389010

And any policy I seen and Social domestic and pleasure purposes I agree but I'm thinking son has no business and just use it as car ect

Allinall

https://www.boards.ie/discussion/comment/122388950#Comment_122388950

OP will certainly care if they land up in court.

Fraud against the taxpayer is not cool.

User1998

Honestly, as a VAT registered self employed person myself, putting a commercial vehicle through your business and claiming back thousands worth of VAT for a vehicle that doesn’t even belong to you is absolutely nuts. I would never do that. Not only are you claiming back the VAT but theres also the capital allowances, income tax, corporation tax and company profits that will be effected.

Just buy a commercial vehicle that has no VAT or buy a passenger version

callaway92

https://www.boards.ie/discussion/comment/122389373#Comment_122389373

This exactly

People don't seem to understand that at all. Countless times I've been asked by friends if they can by an iPhone/Laptop through me and I claim the VAT back etc. It **** so much other stuff up but they don't get it.

Whocare

https://www.boards.ie/discussion/comment/122389178#Comment_122389178

Lol taxpayers you sheep 🐑.

User1998

https://www.boards.ie/discussion/comment/122396443#Comment_122396443

So as well as not being able to spell or string a sentence together properly, you don’t pay tax either. Do you live in a caravan by any chance?

paul71

Theft of €6,500 is a very serious crime.

Whocare

https://www.boards.ie/discussion/comment/122396497#Comment_122396497

I pay taxes too much. All I'm saying is I wouldn't lose sleep over bit of Tax avoidance which is Perfectly legal

User1998

https://www.boards.ie/discussion/comment/122396981#Comment_122396981

Would you stop. What OP is suggesting is tax evasion not tax avoidance😂

DonalB1

https://www.boards.ie/discussion/comment/122397074#Comment_122397074

Can you tell me who exactly is losing out here. My father is entitled to put through a vehicle but hasn't, I’m suggesting taking his allocation.

If it’s the taxpayer you’re worried about I’m sure you had the same qualms about us when the govt were still charging import tax from UK when they were in EU despite it being technically illegal as it was a free trade zone??

We’re completely ripped off in the motor industry given the price of vehicles in UK, US and elsewhere are a fraction of what they are here!

goochy

Hello have you seen how small a country ireland ? Stupid comparisons and stupid reasoning. My father is entitled to something so why shouldn't I claim it . You father will be expected to explain where he got money in the business to buy a vehicle dnd claim money back

User1998

https://www.boards.ie/discussion/comment/122397290#Comment_122397290

What do you mean he’s entitled to put through a vehicle? He’s entitled to purchase anything he wants and reclaim the VAT as long as its for business use. If its not for business use and is not owned or used by him in the course of business then it is not a business expense and cannot be written off for tax purposes or VAT reclaimed on the purchase

Why would you even bother arguing with me? I’m giving you tax advice free of charge. By all means do whatever you want, nobody is stopping you and you may never be caught. I don’t care what you do. Enjoy your new motor

DonalB1

https://www.boards.ie/discussion/comment/122397720#Comment_122397720

wait so because Ireland is a small country the govt should rip us off? Please make it make sense.

Dirty Nails

https://www.boards.ie/discussion/comment/122398563#Comment_122398563

Your willingness to leave your father open to prosecution or even involve him in a vat fraud, maybe leading on to money laundering is scary.How do you plan on accounting for the 30k + vat through his accounts?

Listen to the good advice the posters have given you or talk to an accountant if you don't believe them.

User1998

https://www.boards.ie/discussion/comment/122398613#Comment_122398613

Its absolutely ridiculous. You would have to purchase the vehicle through the business bank account and give the father €30,000 in cash that he can never put in the bank as it can’t be accounted for.

R.O.R

https://www.boards.ie/discussion/comment/122397290#Comment_122397290

Please enlighten me about this illegal tax the government were charging on UK imports while they were part of the EU.

Next you'll be spouting that the Irish government have been paying fines to the EU for years, because of this.

Furze99

https://www.boards.ie/discussion/2058359958/vat-on-commercial-vehicle

You can't purchase the vehicle and treat the tax matters in this way as you are not VAT registered. Your father can buy the vehicle as a business asset, claim back VAT and write off costs over time against income tax. But it will then be a vehicle that belongs to your father and his related business. If it's sold in time, the value achieved is added back into his income etc. Do you work for your father might be the pertinent question and thus need to use the vehicle.

goochy

How does the op have €30k in cash to buy a jeep? Especially as he's not very bright?

paul71

https://www.boards.ie/discussion/comment/122401965#Comment_122401965

The source of funds is certainly a question revenue will ask and would lead them down another route in addition to the fraudulent claim for VAT.