VAT on commercial vehicle

G

gilboy

Registered User
Messages
178
Suppose you are registered for VAT and you purchase a small van for 15k(inclusive of VAT).

The VAT paid on the van is 2700(i.e. 15k - 15k/1.215). If you submit your VAT payments every 2 months, could you share out that 2700 over 6 VAT returns each year(i.e. 1 year).

Thanks
 
It depends on how it was purchased.
- If lease then you claim however many repayments are in the VAT period.
- If loan / HP or outright purchase then you can claim all at once on the next available VAT return.
 
Just for clarification:

Assume van is purchased on the 30-Jan-09, VAT on van is 2700.
Assume business collects 500 euro on income in the Jan/Feb, i.e. T1

When making VAT return in March for the Jan/Feb period, I should be claiming a VAT refund of 2200. Does this sound correct?

Thanks
 
Assuming no other T2 amounts, and assuming you are entitled to full credit ( i.e. not on lease as mentioned above and no non-allowable usage) then yes.
 
Sorry 1 final thing on this.

I forgot to outline in orignal post that I currently have a small van in the business. Hence would be using this as a trade against the new one. Does this change things at all? Current van was purchased 4 years ago, 1 year outstanding on finance. VAT on this would have been claimed 4 years ago

Thanks
 
You will have to pay over the VAT on the van you are trading in.

For example - if trade in value was €1,000, VAT to pay over would be €1,000 x 21.5/121.5 = €176.95
 
Who is the registered owner of the existing van?

Who will be the registered owner of new van?

If the current van for example is in your name and now you are buying in company name then you will nearly have to sell the first one for cash and then do the deal for the new one.

Nothing is ever simple!
 
You must log in or register to reply here.
Menu
Log in
Register