Purchasing a company van through company. How do I claim VAT if Financed

lonelyplanet

Registered User
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Hi,
I am currently looking to purchase a commercial vehicle ( van) for my company. I am wondering how I can claim VAT back if I purchase the vehicle using Finance provided by Garage.
If I purchase with Finance today can I claim VAT for this year or can I only claim after the final payment ??

Thanks
 
Each payment will be claimable as it is paid. Finance company will send a vat schedule.

Eg if your monthly payment is €615, it is effectively €500+vat and therefore you are entering it as a invoice for that month of €500+ vat.

In a way you are renting it from the finance company and then at the end of the payment schedule you "buy" the vehicle with a nominal payment - about €20 depending on the finance house
 
On a side note….Before you buy through your company check the BIK you will have to pay for use of the van. The rates have increased from January 2023 onwards. For the year of assessment 2023 and onwards the cash equivalent for vans will increase from 5% to 8% of the Original Market Value (OMV). If you buy and claim expenses you might be better off. Rates were increased in I think September this year.
 
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