When can i reclaim the Vat on a van HP purchase?

If I were to buy a van on HP, at what point can I reclaim the vat?  Do i record the input vat of £2,750 when I record the asset and the hp creditor, or with the deposit and each intalment made?

The scenario is as follows:-

Van Cost £13,750, plus £2,750 vat = £16,500

Deposit of £4,500 to be made. Balance remaining of £12,000, plus HP interest of £2,938 = £14,938 to be paid. 

1st instalment is £504, followed by 46 instalments of £305 and a final payment of £404.

Thanks for any help.  



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If you have an invoice

scalloway |
scalloway's picture


Richard Willis |
Richard Willis's picture

Just to put it in laymans terms ...

Old Greying Accountant |
Old Greying Accountant's picture

Usually at the start

zebaa |

Contrast this with a lease

David160 |

Sorry to resurrect an old

froth |