Navigating VAT and Motor Vehicles: Key Considerations and Complexities

VAT in relation to motor vehicles is a complex area
Electric cars fall under the definition of a car for VAT purposes
VAT cannot be recovered on the purchase of a car, except in certain exceptions
Leasing a car for business purposes allows for the recovery of 50% of the VAT incurred
If a car is leased exclusively for business purposes, the entirety of the VAT incurred on the lease is recoverable
Providing a car to an employee under a salary sacrifice arrangement is deemed a taxable supply and output VAT needs to be accounted for
The amount of salary sacrificed must be equal to the market value of leasing the car directly
VAT on fuel has separate considerations

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.