Claiming VAT on Commercial Van

Hi,
I bought a van in May and started as a sole trader and registered for VAT in October, the van is soley used for the buisness as I am a plumber and I was wondering is it possible to claim the VAT back on this van??

Thanks

If you mean that you registered for VAT in October 2006 and then purchased the van in May 2007, then provided you have a valid VAT invoice from the supplier showing that VAT was charged to you then you would be entitled to a VAT input credit for the purchase.

Bear in mind that to be entitled to 100% VAT credit then there must be no non-business use of the van, e.g. you must have other personal transport. If you do not have any other personal transport then some apportionment of the VAT must be made to only claim that fairly used for business purposes.

Also, if the van was purchased straight ( for cash/cheque ) or by bank loan or HP then the VAT is claimable in one go. If it was purchased on lease, then the VAT is claimable with each payment, so you'd have two instalments per bi-monthly VAT period.

I dont want to hijack this but you seem to know alot about vat on commercials. I just wondered I thought I remembered hearing you can't claim back vat on a petrol commercial van itself? (I know the vat on petrol itself is not reclaimable)

mickk said:

I dont want to hijack this but you seem to know alot about vat on commercials. I just wondered I thought I remembered hearing you can't claim back vat on a petrol commercial van itself? (I know the vat on petrol itself is not reclaimable)

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Claims to VAT on fuel are ( subject to very limited circumstances as have appeared in other threads on AAM) are limited to diesel. VAT on petrol for use in a motor vehicle (otherwise than as petrol for re-sale by a dealer) is not claimable. You are correct there.

Claims on vehicles themselves are determined by the type of vehicle rather than the type of fuel it uses and rather than saying that you CAN claim VAT on a commercial vehicle, Revenue have worded it that you CANNOT claim VAT on certain types of vehicles. The vehicles excluded are what are termed "passenger motor vehicles". "Passenger motor vehicles" includes, among cars generally, such items as, sports motor vehicles , estate cars, station wagons and motor cycles, scooters, mopeds etc. There are exceptions for driving schools and auto hire businesses. Also any vehicle with a carrying capacity of over 16 persons is allowable for VAT.

The term "passenger motor vehicle" does not therefore include lorries, vans or such vehicles. They are, therefore generally VAT allowable.

However, if in any doubt as to whether a vehicle is qualifying, Revenue advise that one should submit details to one's local Revenue office with manufacturers literature on the vehicle and they will give a determination.

I'm bumping an old thread. Must you apportion the VAT claim on a commercial vehicle where there is private use. I was of the impression that once it is used for a vatable trade the vat can be reclaimed.