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Vehicle hire: Derogation from the VAT directive

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The European Council has adopted a decision authorising the UK to continue applying a VAT measure derogating from Directive 2006/112.

The European Council has adopted a decision authorising the UK to continue applying a VAT measure derogating from Directive 2006/112.

The decision allows the UK to continue, until 31 December 2013, to restrict the right of VAT deduction on the hire or leasing of vehicles not entirely used for business purposes. Any request for an extension is to be submitted by 1 April 2013.
 

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