There has been some success in reclaiming VAT on motor cars, but this usually concerns ‘employer’ and ‘employee’ arrangements. Partners and sole proprietors stand less chance of successfully reclaiming such VAT.

Claims by company to recover VAT on cars

In C & E Commrs v Elm Milk Ltd [2006] BVC 296, the Court of Appeal held that a company could recover input tax incurred on the acquisition of a Mercedes car for business purposes: the tribunal had not misstated the law in any respect and its decision was one which, on the facts of the case, it was open to it to reach.

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