Motoring Expenses - Sole Trader - Allowable tax and VAT returns..

condra · 15-02-2023 09:02PM #1

Hi all.

I recently discovered that as a sole trader, I cannot reclaim VAT on petrol expenses, as opposed to diesel.

I'm wondering if there are other motoring expenses where VAT cannot be reclaimed, or indeed if they can be claimed as an expense in the first place, with regard to tax.

For example, car insurance, tolls (deemed unneccessary?), maintenance, etc.

Currently, when doing my VAT returns, I'm reclaiming the 23% VAT on all motoring expenses (except petrol) after making a deduction to account for the roughly 25% of use which would be personal rather than business.

Thanks for any help with this.

walterking · 15-02-2023 11:11PM

You can't claim 23% when 13.5% is charged.(repairs)

You also can't claim 23% when 0% is charged (insurance)

You also might not be able to claim anything as it depends on how you account for the car itself.

You are probably better off claiming mileage on a personal basis.

Talk to an accountant. It will save you a lot of money

Allinall · 17-02-2023 03:54PM

You can't claim VAT on petrol.

razor8 · 01-02-2025 04:01PM

I only realised today that you can’t claim vat back on petrol for quad & petrol

what exactly is the logic behind this?

Gloomtastic! · 02-02-2025 05:23PM

https://www.boards.ie/discussion/comment/123123919#Comment_123123919

It’s been like that for the last twenty years at least. It may hark back to when diesel engines were considered less polluting than petrol. Revenue and logic, that’s funny 😉

SureYWouldntYa · 04-02-2025 11:21PM

VAT can’t be claimed on hotel accommodation unless its a qualifying conference, there’s a brief out there outlining the criterea but it needs to be a conference where 50 delegates attend so odds are most hotel visits wont qualify

VAT cant be reclaimed on food or drink unless you are buying to sell it on again

You can’t reclaim VAT on the purchase of a passenger car, its quite limited and if you have an accountant who assist with year end id engage them with this

VAT incurred outside the ROI cannot be reclaimed on Irish VAT returns, for B2B outside it shouldnt be charged and for Intra EU it shouldnt be charged when Intra EU VAT registered

callaway92 · 09-02-2025 11:10AM

Can claim VAT back on toll usage if it’s for work purposes.

calii · 23-02-2025 10:23PM

As a sole trader, you can reclaim VAT on diesel but not on petrol. For other motoring expenses like car insurance, tolls, and maintenance, you can reclaim VAT only on the business-use portion (e.g., 75% if 25% is personal use). Ensure you keep accurate records and apportion expenses correctly to comply with VAT rules. Tools like CalcVAT can help you calculate the reclaimable VAT amounts accurately. Always consult your accountant for specific guidance.

Motoring Expenses - Sole Trader - Allowable tax and VAT returns..

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