When is a car a van for VAT reclaim purposes?
21 Sep, 2017
In most cases a business is unable to reclaim the VAT charged when they purchase a car. However, there are different rules for other types of commercial vehicles and in most cases VAT can be reclaimed when a business purchases a commercial vehicle.
For example, vans usually have no rear seats, metal side panels to the rear of the front seats, a load area which is unsuitable for carrying passengers and opaque rear windows. However, there are a significant number of new vehicles where these distinctions
are more difficult to make - is a vehicle a car or a van?