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Sir there is 1 confusion to me regarding input vat in respect of car repairs and fuel, please correct me if I am wrong
A) if car is used only for private purpose (whether by employee or owner) then no input vat can be claimed in respect of car repairs and fuel. Correct?
B) if car is used for business + pvt purpose (whether by employee or owner) then full input vat can be claimed in respect of car repairs and fuel. Correct?
C) if car is used only for business purpose (whether by employee or owner) then again full input vat can be claimed in respect of car repairs and fuel. Correct?
You have not mentioned the important issue of output VAT on this issue – see OT Notes – Chapter 25 Section 4 and you must separate out fuel costs from repairs
Ok sir, but the above 3 cases of input VAT which I have written are correct? Or is their any error in any of these?
A business can recover ALL input VAT incurred on the running costs of a car, such as fuel and repairs, even when there is some private use.
When a business pays for fuel costs for an employee, sole trader or partner and there is SOME private use of the vehicle, a VAT output tax scale charge will be payable.
There will never be a case where there is 100% private use!
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