BVRLA pushes for 10-point rise in VAT reclaim rate

// The clock is ticking on a special concession granted to the UK by the European Commission (EC) on how much VAT a business can reclaim. Since 1995, companies have been able to recover 50% of the VAT incurred on the finance element of a company car leasing fee. However, the EC requires the Government to justify and renew the rate at which businesses can recover VAT every three years, and the next deadline is in 2014. The BVRLA is arguing for an increase in the amount fleets would be able to reclaim from 50% to 60%, which would be worth an additional saving of £100 million. But if this new higher rate isn’t accepted, the BVRLA says the industry could push for the VAT reclaim being settled on a case-by-case basis. This is what already happens in some European countries, but many are…