Many businesses utilise cars and commercial vehicles as part of their trade. The VAT recovery position when purchasing or leasing vehicles is often queried, and in the case of cars in particular, the entitlement for a business to reclaim the VAT paid is very limited. The position is a more favourable for vehicles which are not cars and qualify as commercial vehicles.
HMRC has definitions for both cars and commercial vehicles and identifying the type of vehicle being purchased or leased is the starting point.
Source: saffery.com
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