Posted by Revenue eBrief No. 093/24
Recovery of VAT on Motor Vehicles
The TDM – Recovery of VAT on Motor Vehicles – has been updated to provide further information on vehicle conversions.
EXTRACT
- Converted vehicles
Converting a vehicle involves any modification to the vehicle which changes the details recorded at registration for VRT purposes and this may impact on whether or not the VAT incurred on its purchase can be deducted.
Where a vehicle is converted after registration in the State, it must conform to the specifications for the new VRT category to which it has been converted. In general, this will be evident from Revenue records held for the vehicle. However, Revenue may require proof of conversion and may inspect the vehicle before a VAT refund will be issued. Where a vehicle does not conform to the VRT category specifications, Revenue will not consider the vehicle to have been properly converted and will not
accept the conversion for VAT purposes.
Further guidance on converted vehicles is set out in the VRT Tax and Duty Manual ‘Conversions’.
5.1.Self-supply upon reconversion of a vehicle
Where VAT is reclaimed on a converted vehicle and the vehicle is subsequently
reconverted to a non-deductible vehicle, the trader will be required to account for
VAT on the self-supply of the vehicle
Bookkeepers Ireland 