HM Revenue & Customs has issued a statement - Motor Trade Issues - which usefully provides a list of vehicles derived from car models, which HMRC will accept as being vans for VAT purposes. The benefit of being classified as a van for VAT purposes is that the Input VAT should generally be reclaimable, unlike cars - Car Derived Vans and Combi Vans.
The statement also goes on to remind car dealers that, following the Nordania Finans decision last year, their position regarding claims for the repayment of overdeclared Output VAT (primarily demonstrator cars) has changed and the claims should be revised to reflect any partial exemption that applied.
HMRC expects ongoing cases to be revised accordingly, and will be re-visiting 'settled' claims where they can under the time limits.
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