With the changes in legislation a lot of favourable conditions are back for getting a VAT refund when acquiring or renting company’s cars.
Some changes in the legislation provide greater opportunities for companies to deduct VAT. Companies could use tax credit in the following cases: when they use an operating leasing, when they buy cars for their main business with 6+1 seats and when transport and other specialized companies buy cars, which they use for an activity different than the main one. Companies will have the opportunity to register transport companies, from which all the cars and costs for them in the group will use a tax credit. With all of the examples above, cars can be new or used.
The most direct effect of the new rules will have cars with contracts for an operating leasing, which are in fact renting contracts for a certain period of time. The increase in the operating leasing for cars in the last six quarters up to September 2012 is almost 38%. At the same time the financial leasing continues to decrease. The ratio between the two versions is still ten to one pro financial lease and it varies in the different companies.
One of the most discussed changes concerns companies, using transport services from other companies. They could have the possibility of tax credit for the received services, if they use them for their economic activity, regardless if it is a trade activity or another one.
Another change gives an opportunity for using a tax credit on acquisition of cars by companies, which realize over 50% from their incomes from several activities: Transport, security, taxi services, currier services, renting and training of drivers. These type of companies could also refund VAT when purchasing vehicles until now, but only if they were used for their main business. From now on, this can be also done for cars which are used for different purposes, for example the cars of the managers.