Reclaiming VAT on a part exchanged vehicle

Can I reclaim VAT on a commercial vehicle purchased in part-exchange?

1st August 2009

Yes, as long as you have a valid VAT invoice.

VAT is calculated on the full value of and part-exchange or barter transactions.   VAT should have been calculated on the exchange as if the transaction was entirely for cash. This is for both purchases and sales and the VAT invoice should be issued accordingly.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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