Explanatory note

This Order, which comes into effect on 1st January 1994, amends the scope of the Value Added Tax (Input Tax) Order 1992 concerning the treatment for value added tax purposes of new motor cars. It amends Article 7 of that Order which concerns the non-deductibility of input tax on the supply, acquisition or importation of a motor car.

The Order enables businesses leasing cars to private taxi firms, self-drive hire firms and driving schools to reclaim the tax on purchases of motor cars for this purpose.