Which of the following qualifies as a way to justify reclaiming VAT on a company car?

Reclaiming VAT on a company car is contingent upon the car being used exclusively for business purposes. This means that if the vehicle is wholly dedicated to business transactions, the business can seek to reclaim the VAT paid on its purchase or lease. The justification stems from the principle that the VAT system allows businesses to recover VAT for goods and services that are utilized in their business operations, thereby ensuring that businesses do not bear the VAT cost for activities directly related to their trade.

In contrast, shared use for personal trips, availability for employee use, or frequent rentals does not limit the use of the car strictly to business activities, making it ineligible for VAT reclamation. When a vehicle is also used for personal purposes or made available for employee use, it becomes complicated, as mixed-use implies that not all the VAT can be reclaimed. The presence of personal use diminishes the justification for reclaiming VAT, as the tax system is designed to allow recovery only for purely business-use scenarios.