New Guidance on Vans


Because of the increasing number of vans derived from cars, HMRC has issued guidance which clarifies its interpretation of the definition of a motor car.
This is important because the recovery of VAT on a car is restricted, whereas VAT registered business can  recover the  on a van.
The guidance  –  What is a car, commercial vehicle or motor home for VAT? contains a list vans and ‘combi-vans’ on which VAT is recoverable.

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