Friend of mine has set up a ltd. company and has purchased some cars to rent out.
He paid a sizeable deposit, about 25% on the vehicles and financed the rest.
The financing was done on a HP agreement so I presume he will get a VAT receipt each month for the repayments which he can claim VAT back on?
Can he claim back the VAT paid out for the purchase of the vehicles? he did not get a VAT receipt for the deposit he paid.
He will obviously charge VAT on the rental of the vehicles and pay it over to the revenue.
He paid a sizeable deposit, about 25% on the vehicles and financed the rest.
The financing was done on a HP agreement so I presume he will get a VAT receipt each month for the repayments which he can claim VAT back on?
Can he claim back the VAT paid out for the purchase of the vehicles? he did not get a VAT receipt for the deposit he paid.
He will obviously charge VAT on the rental of the vehicles and pay it over to the revenue.