Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Government and Public Bodies

Government departments and health authorities: Contracted Out Services (COS) Headings: COS Heading 26 - Hire of vehicles, including repair and maintenance

This Heading allows recovery where a government department or NHS body enters into a contract for the supply of a vehicle/vehicles and the repair and maintenance of these vehicles by the supplier is specified in the contract.

 

Includes

  • Contracts for the hire of pool cars, company cars or other vehicles where the contract includes repair and maintenance by the supplier

 

Excludes

  • Hire of vehicles alone where the contract does not include repair and maintenance, however the VAT on the separate supply of repair and maintenance will be recoverable under Heading 37

 

Additional information

  • Where you have a contract which includes both the hire of vehicles without repair and maintainance and hire with repair and maitainance, you can only recover the VAT in relation to the element of the hire which include repairs and maintainance.