Commercial Segment Faces Up To Tax Change

June 2006 | Market Trend Analysis

From June 2005, input tax deductions were ended, including the VAT offset on the purchase of commercial vehicles used for business purposes. Before this measure was enforced, buyers of commercial vehicles were exempt from VAT when making the purchase, and were only subject to the tax on the difference between the price they bought the vehicle and the price at which they later sold it. This benefit was eliminated for all types of commercial vehicles, including LCVs, such as Renault Kango and Citroen Berlingo, medium-weight pickup trucks and closed commercial vehicles like Ford Transits and Volkswagen Transporters. In practice, this

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