A client has just bought a new car for his chauffeuring business. It is not available for private use but is 4 years old. Is there a restriction on how old the car has to be to claim VAT back on it? He was charged VAT when he bought it.
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when is a car not a car?
when it's a 'qualifying' motor car and it is acquired by a taxable person who intends to use the motor car primarily, [and one of the three criteria is] :
to provide it on hire with the services of a driver for the purpose of carrying passengers.
I think it is a qualifying motor car because it has never been supplied where VAT was wholly excluded from credit as input tax. Not entirely sure but I would welcome other comments to confirm my thoughts