# What is a "van" for tax/VAT purposes?



## lastchancers (Jun 19, 2008)

We have a business near Paphos. Our accountant tells us that the expenses incurred using our current hatchback car for business cannot be "laid-off" against income tax, and any VAT on repairs, fuel etc similarly can't be reclaimed. However, apparently if the business uses a "van" rather than a car, we can reclaim, offset etc.

So, what exactly constitutes a "van"? Is, for instance, a pick-up with a four-seater cab a "van"?

Anyone know for sure?


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## Bevdeforges (Nov 16, 2007)

You need to check local laws, but in some countries in Europe, VAT is only deductible on a "business vehicle" - which means a two-seater. In France, for example, it's possible to convert a break car into a "commercial vehicle" by removing the rear seats and the rear seat mounting points, then inserting a liner (like a truck bed liner) in the open space to create carry room. (Though the VAT authority has a tendency to question conversions.)

Your accountant should be able to give you information about what constitutes a "van" in Cyprus.
Cheers,
Bev


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## Veronica (Apr 5, 2008)

lastchancers said:


> We have a business near Paphos. Our accountant tells us that the expenses incurred using our current hatchback car for business cannot be "laid-off" against income tax, and any VAT on repairs, fuel etc similarly can't be reclaimed. However, apparently if the business uses a "van" rather than a car, we can reclaim, offset etc.
> 
> So, what exactly constitutes a "van"? Is, for instance, a pick-up with a four-seater cab a "van"?
> 
> Anyone know for sure?


Yes a crew cab pickup does count as a van. However our accountant tells us we can claim a proportion of our expenses against tax, vat etc. but maybe it depends on t he type of business you are running. 

Veronica


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