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
Replies (4)
Please login or register to join the discussion.
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.
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.
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?
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.