Taxis & VAT

Taxis & VAT

I'm thinking of starting my own taxi business, but have some questions on VAT.

Do I have to register for VAT?

If I register for VAT can I reclaim the VAT on my motor vehicle and on my fuel?

What are the downsides/upsides of being registered for VAT?

A lot may depend on whether you operate as a sole trader or a limited company. Perhaps these links might be of assistance on the general issue of starting a business (i.e. not specific to the taxi business)?
<!--EZCODE LIST START--><ul><li>Tommy McGibney's summary [broken link removed]</li><li>Revenue's [broken link removed]</li></ul><!--EZCODE LIST END-->

You could register for VAT as a tai driver

You would be exempt but you could waive it and then be able to reclaim VAT on the price of the car and petrol

But the problem is that you would then be liable to charge VAT on your fares
Therefore deducting 21% off the top and passing it onto the tax man

It is possible but it is of no benefit

Stu