Comments to answers

Can one claim vat on a company car that's not commercial. Eg directors car?

VAT on Motor Vehicles :

INPUT tax on purchase of PASSENGER CARS & MINI-BUSES including repair & maintenance has NEVER been allowed by both the repealed VAT Act (cap 476) and the new VAT Act 2013 unless primarily used in the supplying of taxable goods or services or stock in trade.

In the repealed Act (cap 476) we used to talk of the " STOP ORDER" However, VAT 2013 incorporated the stop order into PART VI s.17(4).
Cap 476 (par. 2(2(1d)) repealed Act) has a window for INPUT tax on modified vehicles to be allowable with the commissioners approval. This repealed Act does not define "business" as well. Hence a lot of businesses would use this loop hole to claim input tax. Attached find an extract of part VI s.17(4).

This I hope answers both the issue of excess input tax and VAT on sale of passenger cars & mini buses.

Also note the word "exclusively" is in relation to passenger cars & mini buses only.

Thank you CPA John, I have previously worked with an LTO company which claimed ALL the VAT incurred. Any KRA vat audit would shock them big time!

Note VAT is only claimable if a vehicle is used to sell vatable goods

I think vat is not allowable on company vehicles if its not used exclusively for business be it commercial or private... CPA John, is this true?