Vat within Taxi ltd company.

Hi everyone, just wondering if anyone knows the answer to this question.

As a sole trader taxi driver you are exempt from vat, so you do not register for vat or do vat returns.

If you start a limited company and have a few vehicles on the road can you claim vat back on the purchase of new vehicles and fuel ect or are you still exempt as there's no vat on taxi fares?.

Nope

Because the fares for carrying passengers are vat exempt

However , if booking fees are charged then they are subject to VAT (assuming the turnover of the business exceeds 40k for booking fees)

So typically no because you offset your purchase/outgoings/expenses VAT
Against your
Sales /input/income VAT

You need to be VAT registered