Rental or leasing cars
If you rent or lease a car, you only get a deduction for half the VAT. If it is a light truck and the driver’s cab and the cabinet are separate units, the entire VAT may be deducted.
- It’s easy to forget that you can’t deduct all the VAT for rental or lease cars, so factor that into the cost calculation and make sure it’s bookkept correctly.
- If your business needs a light truck, be sure to ask the car rental company about which of the options you can deduct full VAT for.