Generally, businesses can reclaim 50% of the VAT on the monthly rental for cars used for both business and private purposes. If the vehicle is used 100% for business, you may be eligible to reclaim the full 100% of the VAT. Additionally, the VAT on maintenance packages is usually 100% reclaimable, making "all-inclusive" contracts even more attractive for savvy financial directors.
- 50% to 100% VAT reclamation on monthly rentals.
- Full VAT recovery on maintenance and service costs.
- Rentals are usually 100% tax-deductible against corporation tax.
- Improved cash flow compared to outright purchase.
To maximize your tax position and calculate the exact VAT savings for your specific models, our tax-specialist advisors are ready to assist with a detailed breakdown.
Understanding these fiscal advantages is key to making an informed decision about your company’s mobility. Full Rent provides transparent invoicing that makes VAT reporting simple for your accounting team. By choosing the right leasing structure, your business can drive premium vehicles while significantly reducing its tax liability.
Make your tax work for you, not against you. Optimize your business spend with a VAT-efficient lease.
Get in touch for a professional tax-efficiency consultation regarding your next business vehicle.