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Recovering VAT on Motoring Costs: Choosing the Right Method

Shared from Tax Insider: Recovering VAT on Motoring Costs: Choosing the Right Method
By Andrew Needham, January 2026

Andrew Needham looks at the rules for recovering VAT on motoring costs. 

The recovery of VAT on motoring expenses continues to cause confusion to businesses and advisers alike, so here is a quick look at the different methods of recovering VAT and the advantages of each.  

The basic systems for recovering VAT on motoring expenses are: 

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