What is a car, commercial vehicle or motor home for VAT?
HMRC have updated their guidance on the classification of vehicles.
For VAT purposes it is vital to know the differences between cars and other vehicles. This is because in most cases, VAT registered businesses cannot reclaim the input VAT incurred when they purchase a car. Generally businesses are able to reclaim the input VAT when they buy a commercial vehicle.
The HMRC guide explains the difference between a car, motorcylce, a motor home and a commercial vehicle for VAT purposes.
The link also gives access to the current list of 'Car derived vans and combi vans'. This updated useful list considers the treatment of some borderline vehicles.
Internet link: HMRC VAT motor vehicle guidance