Claiming VAT on a company car depends on specific conditions. In United Kingdom the following conditions apply.
1. VAT on Purchase
Fully Business Use: You can claim 100% VAT on the purchase of a car if it’s used solely for business purposes. This means that the car cannot be used for personal journeys at all.
Partially Business Use: If the car is used for both business and personal use, you can only claim a portion of the VAT (based on the percentage of business use).
2. Leasing a Car
Similar rules apply for leased cars. If the car is used solely for business, you can reclaim 100% of the VAT on lease payments. For mixed-use, you can reclaim VAT based on the percentage of business use
