Are you sure you want to delete your account?
You have indicated you do not agree to our terms of use, do you wish to delete your account?
Login
person
lock_outline
Why not sign up?

You will also be registered for the agent to contact you via other means you provide, with information relevant to your property search.

Register
There was an error creating your account, please try again. If the problem persists, please contact us and we will investigate.
Password does not match
How would you like to be contacted?

Is input VAT recoverable on the purchase of a car?

Published: 21/08/2019 By Thomas Agyapong

The input tax on the purchase, acquisition, or importation of a motor car is generally blocked. The blocking order is outlined in SI 1992/3222 VAT (Input Tax) Order 1992.

The term 'qualifying car' is widely misunderstood; not least by car dealers who often tell potential purchasers that it means the car qualifies for VAT recovery.

A car is a qualifying car when it has not been subject to the input tax block and therefore VAT is charged on its sale. The block does not apply to a car to be used for one of the following purposes:

- as stock in trade of a motor manufacturer or dealer;
- primarily for the purpose of taxi hire; self drive or driving instruction, or
- exclusively for a business purpose and not made available for any private use.

If you have any questions regarding the input tax on the purchase of a car, please give us a call on 020 8661 7878 or email bsg@turpinba.co.uk