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VAT on chauffeur car

VAT on chauffeur car

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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11th Feb 2011 16:19

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

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By 0098087
11th Feb 2011 17:19

Oh, it's certainly qualifying. My client was told that if it's more than 3 years old even if it's qualifying then you can't claim VAT back. Never heard that one before! 

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