If VAT qualifying the car can be Contract Hired within certain parameters.
As far as I understand a company can reclaim the VAT on a car if the vehicle is used only for company business i.e. no personal use and is used as a pool car i.e assigned to no one in particular. It would also have to stay at the business premises over night. The onus would always be with the company to prove that the car remains VAT qualifying.
VAT Qualifying as far as I know generally means the car has been a dealer demonstrator. Something to do with complex VAT rules as it means the car has never been owned by a private individual. If a car is owned privately the VAT chain ends. The price quoted will include VAT but a private buyer cannot reclaim VAT.
If a dealer is advertising a car as vat qualifying then the advertised price is inclusive of vat and on your receipt of payment for the car the vat content should be shown seperate
for example if the car is advertised for £11750 then the vat content is £1750 so the car is only £10000 If you are vat registered then you are able to claim the vat back also if you export the vehicle out of the uk you can also claim it back
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