The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of when VAT can be recovered on motoring expenses. This note should be read in conjunction with the following guidance notes:
A business can reclaim VAT incurred on repair and maintenance costs providing the following conditions are satisfied:
Please note that a business can recover VAT on repair and maintenance costs even if it has elected not to recover VAT incurred on fuel purchases.
Certain car parking will be liable to VAT at the standard rate. No VAT is charged on on-street meter parking. If the receipt issued by the car park operator has a VAT registration number shown then it is likely that the parking charges will be liable to VAT. The business can reclaim any VAT incurred on the parking costs incurred for business purposes.
If the business pays for road fuel, one of the following methods could be adopted to determine the amount of input tax recovered:
The business can:
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