VAT on pickup Van

VAT on pickup Van

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Can a business claim input VAT for a pickup van. Is it treated as a Car or Van. If secondhand pickup van is sold, should VAT be charged or it zero rated like a car.
Mani Chacko

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By neileg
13th Dec 2006 16:40

Depends
If the pickup has a single row of seats, it's a van.
If the pickup has two rows of seats (a double cab) then it's a car, unless the vehicle payload is one tonne or more, in which case it's a van.

This applies to both VAT treatment and benfits in kind treatment for the driver.

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By Paul Soper
13th Dec 2006 22:30

VAT and IT the same?
Actually the definition of what is a private motor vehicle or a van for VAT and IT purposes is NOT the same. The load carrying capacity of a tonne only applies to VAT, where from an IT perspective the issue is is it a vehicle to carry goods of whatever description. See the case last year of Morris (County Pharmacy) v HMRC for further details.

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By neileg
14th Dec 2006 11:29

Hi Paul
So far as I am aware, for a double cab pickup, the treatment for IT and VAT are the same. Perhaps my posting wasn't specific enough?

EIM23045 suggests that Morris (County Pharmacy) v HMRC is not being applied to these vehicles. Do you agree?

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By Paul Soper
14th Dec 2006 22:58

Hi Neil
The point I'm trying to make is that the definitions are materially different, although it seems that for many double-cab pickups the treatment is the same as long as the load-carrying capacity, reduced by any fixed cover remains abone 1 tonne or the GVW is more than 3 tonnes.

However the questioin is about a "pick-up van", maybe its a double-cab pickup maybe it isn't, as the definitions aren't the same you can't guarantee the treatment will be the same. Morris v HMRC the vehicle was not a PMV for VAT purposes but was for IT purposes of course. But then it was a rather large camper van.

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