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05 June 2006

VAT - The figure of 17.5% Value Added Tax is a fact of motoring life when you buy a new car and is included in the on-the-road prices published in What Car?.

There is one exception: you don't have to pay VAT if you buy a vehicle which you 'do not intend to make available for private use'. That means owners of vehicles such as vans and pick-ups, which will only be used for business, can reclaim the VAT they have paid, as long as they are VAT-registered.


Want to know the difference between your APRs and your PCPs? Our Glossary will guide you through the minefield of car-buying terms.

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