VAT back on new motor vehicles

VAT back on new motor vehicles

Normally, there is no VAT that can be claimed back on new motor vehicles. However there is partial relief for certain qualifying vehicles as set out below

Accountable persons can deduct up to 20% of the VAT incurred on the purchase, hiring, intra-Community acquisition or importation of certain qualifying vehicles, subject to the normal rules on deductibility.

A qualifying passenger motor vehicle is a vehicle that:

1) is used for at least 60% business purposes (for a period of 2 years or more),
2) was first registered for Vehicle Registration Tax (VRT) purposes on or after 1
January 2009 and
3) has CO2 emissions of less than 156g/km (i.e. CO2 emission bands A, B and C).

The motor vehicles covered are:
a) estate cars
b) sports motor vehicles
c) station wagons
d) motor cycles
e) motor scooters
f) mopeds
g) autocycles.

Subject to qualifying conditions and criteria

Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie