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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4970
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We are an irish company, with a sales rep in the UK, I need

Customer Question

Hi Guys,
We are an irish company, with a sales rep in the UK,
I need to get a company car for him, should i buy or lease the car and what are the VAT implications? He will not be using the car at all for private use,
I read somewhere that if you buy a car outright and it has no personal use, VAT can be claimed back?
Also any advice on claiming Vat back on fuel costs?
The Sales Rep wants to use a 1.0 litre petrol car to keep the cost of BIK to a minimal.
Also to pay for this service, we are Vat exempt in Ireland and have a valid 56B form and i would like an invoice to put through the company books,
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.

Hello Robert, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

You are correct in your surmise as to the the input tax reclaimable on purchase or lease hire providing there is no private use of this vehicle. Fuel costs input tax may be reclaimed as normal. However, you would have to be registered for UK VAT in order to achieve these reclaims.

I do hope that you have found my reply of assistance.

Customer: replied 11 months ago.
We are not registered for VAT in the UK, So then would not be able to reclaim the VAT on the car and the fuel costs?
So to buying a car may be the best solution, say buying for 16k instead of paying about 14k(inc Vat) for a 3 years lease.
Is there any way we can claim Vat back other than register?