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VAT reclaim on Vans and Commercial Vehicles

Some vehicles look like vans and don't have windows in the sides behind the driver. But they do have additional seats for carrying passengers behind the front row of seats (or they're designed so they can be fitted with them) ?

They're sometimes known as combination vans or combi vans. HMRC considers that this type of vehicle is a commercial vehicle for VAT purposes if it meets either of the following conditions:

1. It has a payload of more than one tonne after the extra seats have been added, or
2. The dedicated load area (the load area that's completely unaffected by the extra seats) is larger than the passenger area. This means that the main use of the vehicle is for carrying goods rather than passengers.

If it meets either of these conditions then the vehicle is a commercial vehicle for VAT purposes and you can reclaim the input VAT if you follow the normal rules for reclaiming VAT.

HMRC list of car derived vans and vans with rear seats

HMRC has produced a list of car derived vans and vans with rear seats showing whether they're classed as a van (commercial vehicle) or a car for VAT purposes. Remember that vehicle specifications change so the list may not be up to date. If you're in any doubt you can contact us»