Under what condition can input VAT be recovered on a company car?

The recovery of input VAT on a company car is permitted primarily when the vehicle is used exclusively for business purposes. This condition is essential because VAT is designed to be reclaimable for expenses that are directly related to taxable business activities. If a company car is utilized solely for business-related travel, it meets the criteria for input VAT recovery, allowing the business to reclaim the VAT that was charged on the purchase or lease of the vehicle.

Other scenarios, such as employee allowances or including VAT on customer services, do not align with the necessary criteria for recovering input VAT on company cars. Additionally, reclaiming VAT for personal use only is not permitted, as personal expenses do not contribute to taxable business activities. Thus, the strict requirement of exclusive business use is key to reclaiming input VAT on company vehicles.