Vat Query

[Westgolf]

Where I record the purchase of equipment and the vat portion applying as an expense in my books and claim as input vat. The machine is financed by a commercial finance company. Can I claim the Vat element of the monthly lease payment?

 

[Steven Barrett]

Yes

 

[Westgolf]

Many thanks

 

[Mrs Vimes]

The lease schedule I'm dealing with for someone at the moment says you can only claim the VAT at the time the payment is made, so you would not be claiming the VAT on the original invoice.

 

[RedOnion]

You should only be paying VAT once. Therefore you only claim it once.

If you have a finance lease, the finance company bought the asset and claimed the VAT on the original invoice. You're being charged VAT on the lease payments - that's the VAT you can claim.