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Thread: VAT on mini-bus for employees?

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    New Member Buttercup's Avatar
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    VAT on mini-bus for employees?

    Hi All,

    We want to buy a 16 seater mini-bus, for our employees, who are currently making use of bus transport (paid by the company), to travel from A to B - With further calculations we would save much more and it would be a better choice to buy a mini-bus for the employees to travel between home and work. Will I be able to declare VAT on the min-bus with the purchase?

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    No, you are specifically denied an input credit on any passenger carrying vehicle.

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    New Member Buttercup's Avatar
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    Thanx Clive,

    Got it -Article 11(2)

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    Uhm, I stand to be corrected, but vehicles carrying 16 or more passengers are specifically excluded from the definition of a "motor car", which would suggest that, provided they are used in your trade (they are) you would be able to claim input VAT.
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    Mark, as far as I know 16 is the cut-off, meaning that up to 16 no, more than 16 yes.

    Also, my understanding is that if it is used to transport employees between places of work (such as sites) it is classed as used in making taxable supplies, but not if used to transport employees to and from work / home.

    There used to be an apportionment limited to 20% of the VAT, I am not sure if it still exists.

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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    Also, my understanding is that if it is used to transport employees between places of work (such as sites) it is classed as used in making taxable supplies, but not if used to transport employees to and from work / home.
    I am told that the above is a seriously dodgy example, a better one is a package tour operator

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    New Member Buttercup's Avatar
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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    Mark, as far as I know 16 is the cut-off, meaning that up to 16 no, more than 16 yes.

    Also, my understanding is that if it is used to transport employees between places of work (such as sites) it is classed as used in making taxable supplies, but not if used to transport employees to and from work / home.

    There used to be an apportionment limited to 20% of the VAT, I am not sure if it still exists.
    If traveling is from site A to Site B - Can I claim input tax on the purchase of the mini-bus although a Mini-bus is classified as a vehicle when 16 or less seats? Article 1a

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    If it is not made for more than 16 persons, no not ever, no matter how you use it.

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