VAT treatment of cars for sales representative

What are the requirements apart from GPS in cars to deduct 50% of VAT for fuel and car leasing for cars given to warehouse managers and sales representatives?

There is nothing in the legislation that refers to GPS. Section 4.2 of this guidance states that you can reclaim 50% of the VAT relating to the rental cost of a lease car. You cannot reclaim VAT on the car if you purchase it outright (own the car). it does not matter what job role the employee has, if their contract with you is to supply them a lease car, then the lease cr rental is 50% recoverable. You can reclaim 100% of any car repairs, maintenance or servicing. https://www.gov.uk/guidance/vat-on-motoring-expenses-notice-70064#input-tax-on-leased-cars With regard fuel for the lease cars, HMRC internal manuals at this link should cover most of your queries. https://www.gov.uk/hmrc-internal-manuals/vat-input-tax/vit55400

Hi Zuzanna,
If you lease a qualifying car for the business then there is a 50% input tax clock but you are able to reclaim the other 50% VAT as input tax subject to the normal rules of unput tax.
Please see the guidance below:
4. Input tax on leased cars
Thank you.