logo | Car Reviews, News and Features

Quick car review finder - select below

Ask Us Anything

Please ask your question in the box below. We will answer it as soon as possible.

Please note that we may edit the text of your question and that, if you provide your name and town, these will appear with your question. No other personal or contact information will be displayed or made public.

Top Categories

Can I claim back VAT on a car lease?

As a sole trader can I claim back the VAT on a car lease?

Filed under finance - Asked by Adrian Doyle (Wexford) - Mon, 30 Jan 2023 19:36

Shane O' Donoghue Answered by: Shane O' Donoghue - Complete Car Advisor - @Shane_O_D


Hi Adrian,

For the most part yes. This is from Revenue: "In the case of leasing VAT deductibility is based on 20% of the monthly leasing charges."

2 responses (latest at the top)

Hi Adrian,

My understanding is that it's treated as a 20 per cent VAT rate regardless of how much VAT is actually paid. I also believe that the full lease payment can be treated as an expense if the vehicle is used for business purposes 100 per cent of the time.

Every circumstance is different, however, so I'd urge you run this past your accountant before making any decisions.

Posted by Shane O' Donoghue - Complete Car Adviser (Dublin) - Wed, 01 Feb 2023 20:39:41

Thanks for the reply, but I'm not sure what it means. Is it that the VAT applicable to 20 per cent of the lease payment can be reclaimed? Can the full lease payment be treated as an expense for income tax purposes?

Posted by Adrian Doyle (Wexford) - Wed, 01 Feb 2023 20:25:37

Already a member?

If you are already registered, you can log in to send your question. Otherwise, please complete the following. Only your name is mandatory, but if you enter your email address, you will be notified when your question has been answered by our experts.