WebA company that operates a business, hiring or leasing out vehicles, is entitled to deduct the VAT on any vehicles purchased or hired by it for onward hiring to customers. The hire company must charge and account for VAT on any subsequent sale or disposal of vehicles that were used for hiring out. 2.4. Recovery of VAT under hire-purchase agreements WebIf your company buys new cars or vans for use in your business then VAT is normally applied to the purchase price but there are restrictions on recovering the VAT. Company Cars Company cars are normally assumed to have a dual purpose, that is business travel and personal travel by the drivers.
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