Andrew Needham looks at what counts as a commercial vehicle and the VAT recovery position.
In many cases, it is easy to identify a commercial vehicle, such as an HGV, transit-type van or a coach.
However, there are some vehicles that are classified as commercial vehicles (defined as having a payload of over one tonne or an unladen weight of three tonnes) but have a dual purpose and are held out for sale as ‘lifestyle’ vehicles that can also have a private use. These vehicles are car-derived vans and vans with rear seats – combination or combi vans and dual cabs. Commercial vehicles suitable for private use include motor caravans, motorcycles and double cabs.
Dual-purpose vehicles
Car-derived vans are based on cars and look similar to cars on the outside. However, either the manufacturer or a vehicle converter has altered the inside of the
