Hard shoulder:The Government plans a 20 per cent rebate on the VAT paid on company cars. The Finance Bill, which gives effect to the Budget, includes a revised version of rules on VAT payments on company cars.
Under the new rules, firms can reclaim 20 per cent of the VAT incurred on the purchase, lease, or hire of a company car registered after January 1st, 2009 that is used at least 60 per cent for business purposes. The rebate only applies to cars with carbon emissions of less than 156g/km, thus falling into the emissions bands A, B or C.
The rebate was requested by the Vehicle Leasing Association of Ireland and its president, John Wallace, welcomed the change.