Irish VAT On Passenger Vehicles
Most businesses are aware that VAT can be reclaimed in respect of the purchase of a commercial vehicle but may not be aware that an element of VAT can be reclaimed in respect of passenger motor vehicles.
To reclaim VAT on a passenger motor vehicle the following conditions must be met;
- The vehicle must be first registered for VRT from 1 Jan 2009
- The CO2 emissions level must be less than 156g/km and
- The vehicle must be used for at least 60% business use for the first two years.
Where all of the above conditions are met 20% of the VAT on the purchase price can be reclaimed.
However, if the business use falls beneath the 60% in the first two years a portion of the VAT reclaimed will need to be repaid to Revenue.