Vat on vehicles

[Dave A]

Understanding the vat claiming on vehicles, vat claims are not allowed on motor vehicles when purchased by a vat vendor.

OK - so I'm doing it wrong then

Please refer to post 3 and then confirm your position on this.

[flaker]

Hi, yes you can claim the vat on the vehicles and it will still be classified as an asset in the financials.

u have to remember,however,that once you sell these cars that you've claimed vat on,you now pay back the vat on the selling price.

[eitai2001]

Hi

You are not allowed to claim the VAT on the actual motor vehicle as definited in S1 of the act.

You are allowed to claim VAT on the maintenance, etc as this is not excluded ... only the actual motor vehicle is specifically excluded. The only provisio is that this maintenance, etc must be for business purposes otherwise you will need to apportion the business and private use.

If you sell the vehicle, then you will have to charge output vat, but a change of use adjustment comes into play and you will be allowed to claim input vat on the purchase price, unless it is sold to a connected person in which case you pay input vat on the lower of the purchase price or market value.

The exception to the rule of not claiming input VAT on the vehicle is if renting a car is your main source of income or you buy and sell cars, in these circumstances you can claim VAT.

Regards

Itai

[AletR]

Hi

You are not allowed to claim the VAT on the actual motor vehicle as definited in S1 of the act.

You are allowed to claim VAT on the maintenance, etc as this is not excluded ... only the actual motor vehicle is specifically excluded. The only provisio is that this maintenance, etc must be for business purposes otherwise you will need to apportion the business and private use.

If you sell the vehicle, then you will have to charge output vat, but a change of use adjustment comes into play and you will be allowed to claim input vat on the purchase price, unless it is sold to a connected person in which case you pay input vat on the lower of the purchase price or market value.

The exception to the rule of not claiming input VAT on the vehicle is if renting a car is your main source of income or you buy and sell cars, in these circumstances you can claim VAT.

Regards

Itai

Hi Itai

Thanks for the explanation.
That means even though we buy PASSENGER vehicles as our armed response vwhicles, we ARE allowed to claim the vat on the MAINTENANCE and RUNNING COSTS, but the Vat on the Purchase price are disallowed?

DAVE A, do you agree with this?

Best regards
Alet

[Dave A]

DAVE A, do you agree with this?

Spot on

[AletR]

thank you all for the help!

A