claiming vat on mileage

Claiming VAT On Mileage- How to Claim for Business Expenses

Claiming VAT on mileage is a financial strategy that holds great potential for businesses looking to adjust their expenses. This practice involves seeking a settlement for the Value Added Tax (VAT) incurred on fuel and costs related to vehicles during business activities. By efficiently directing the complexities of VAT reclamation on mileage, businesses can significantly reduce their operational costs and enhance their financial efficiency.

Claiming VAT on mileage is to demand value-added tax on the business mileage expenses. This is responsible for the driver's necessities for business tours Goods such as clothing and food items, the payment of approved wages, the amount spent on fuel, and the payment of vehicle taxes.

It allows us to keep records of the exact position of our business transactions concerned with mileage, consisting of date, distance, and the reason for travel. It tells us the VAT which is capable of expenses. The tax charge amount and laws and regulations may vary from country to country. For a free calculation of VAT savings on your business mileage, check out this handy VAT calculator tool. This tool simplifies the complexity, allowing you to input details and will get the amount with vat and total vat.

Table Information

Date Petrol per mile Total Miles Covered Reasons for Trips
2023-2- 10 13P 60 Customer Meeting
2023-12- 08 16P 40 Visit For Sale
2023-8- 10 23P 30 Communication officially
Total 130 miles

Many countries make particular arrangements for getting VAT again. You will need to fill out the required forms for this purpose and send them to the tax authorities.

Keep in mind when the last date is for submitting the VAT claim to the authority. If the deadline is passed, then the claim may either be rejected or a fine may be imposed for submission. It maintains a record of several years of taxes in a particular state as a post that checks the demand for VAT.

How much can be claimed?

If you're an employee using your vehicle for work activities, such as client meetings, or if you're a trader who needs to visit customers, you can potentially claim your mileage expenses. The amount you can claim is dependent on the number of miles you travel.

For both vans and cars, you can claim up to 45 pence per mile for the first 10,000 miles, with the rate dropping to 25 pence per mile beyond that verge. The initial 45 pence per mile rate comprises two components: fuel and wear and tear. Employers may also consider passenger rates, allowing them to claim an additional 5 pence per mile for each passenger during business journeys.

What can Employees claim?

It's important to note that you cannot claim for personal journeys undertaken during work hours, as these fall outside of work responsibilities. Additionally, your daily commute to your regular workplace is not eligible for settlement. Therefore, it's crucial to maintain accurate records of your mileage to ensure that your claim observes regulations and is successful.

Reclaiming VAT for Employers

As an employer, you can only recover the VAT on your employees' mileage expenses if you provide a mileage allowance for the use of their vehicles for work purposes. Your claim can only cover the fuel portion of the mileage expense.

The allowance you offer must match the fuel component of the claim you wish to make. This applies solely to drivers employed by your company, excluding contract workers or freelancers.

If you drive an electric vehicle, you can claim the full available amount. Drivers who opt for this eco-friendly mode of transportation are entitled to a full Approved Mileage Allowance Payment (AMAP) of 45 pence for the first 10,000 miles, followed by 25 pence per mile thereafter.

This approach can result in substantial savings, particularly considering the average cost of electricity per mile is approximately 5 pence. If your electric vehicle is priced below £40,000 and was registered before 31st March 2017, you can also benefit from reduced vehicle tax.

It's crucial to remember, whether you're an employer or an employee, that maintaining VAT receipts for fuel is essential for a successful claim. A RAC company fuel card can prove invaluable in monitoring your business's fuel consumption and securely storing all VAT receipts in one convenient location.

Detail Of Claiming VAT On Mileage

Claiming VAT on mileage is only used in business transactions in those countries which contain VAT systems.

There are the following unique features of claiming VAT on mileage:

reclaiming vat on mileage

  • Only For Business Intend

    You can claim VAT on mileage rates for vehicles when you only use them for business travel. Personal travel carried out on business does not qualify for VAT demand. Exclusively designed for business purposes, our service modernizes the process of 'Claiming VAT On Mileage,' ensuring that businesses can efficiently recover value-added tax on their mileage expenses.

    To know about how VAT affects insurance and especially when it comes to claiming VAT on mileage for business vehicles? Check out our detailed guide on Understanding the Impacts of VAT on Insurance. If your vehicles are used only for business travel, you can potentially claim VAT on mileage rates but keep in mind, personal trips during work do not count for VAT.

  • VAT listed Business

    Your business should be VAT-listed to demand value-added tax on mileage. You must spend and bring together VAT on your business and be listed with tax approval. Our platform is tailor-made for VAT-listed businesses, simplifying the procedure for 'Claiming VAT On Mileage.

  • Offers Exact Records

    It offers to maintain exact and clear records of the first day of a business tour and the date of end of the journey, the reasons for trips. And the determination of how many kilometers the vehicle has been driven. We pride ourselves on providing precise record-keeping capabilities, an essential feature when 'Claiming VAT On Mileage.' Our system ensures that you maintain accurate and comprehensive mileage records, guaranteeing a smooth and meticulous process for VAT reclamation.

  • Unique Mileage Rates

    VAT mileage rates are not the same at every place because they keep changing. Most of the countries give a chance to get unique and standardized mileage rates. Which makes the procedure very easy and simple. You can multiply this by the business mileage. You can also reclaim VAT on mileage because mileage claim is your right as per requirements.

  • VAT Used To Fulfill Expenses

    You can generally claim value-added tax on fuel, accommodation, and other expenses concerned with vehicles that are used for business travel. It is responsible for vehicle repair, insurance, and toll charges. Our system is optimally designed to assist businesses where VAT is utilized to cover various expenses, particularly for 'Claiming VAT On Mileage.' We facilitate the meticulous tracking and management of these VAT-related expenses, ensuring that your claims are accurate and compliant.

  • List Of Goods For VAT

    You may need a list of items required by the VAT for vehicle-related expenses and then add them to your records. We offer a comprehensive list of eligible goods and services for VAT, a valuable feature for businesses looking to optimize their 'Claiming VAT On Mileage' process. Our platform ensures that you have access to an up-to-date and detailed catalog of items that can be included in your claims, providing clarity and transparency in your VAT reclamation efforts.

  • Agreement

    It ensures your agreement with local rules and laws of VAT and helps to maintain exact records. And tax options check the demand on your mileage. Our platform facilitates seamless and secure agreements, a key aspect of 'Claiming VAT On Mileage.' We provide the tools to create and manage agreements efficiently, ensuring compliance with HMRC regulations and streamlining the process of making VAT claims on mileage expenses.


  • It allows to maintenance of accurate records

  • It offers the driver essentials for business tours.

  • It gives a chance to get a unique mileage rate

  • It reduces VAT liability which promotes business.

  • It is responsible for vehicle repair and toll charges.


  • Maintaining exact records of mileage and expenses takes a lot of time.

  • VAT rules are very complicated.

Claiming VAT on mileage depends on the tax imposed by each country and its business laws. Vehicles used by you and your associates for business travel, VAT may be demanded on mileage.

The official mileage is more distinctive than the personal ones. VAT rates vary according to the tax rules of each country. The VAT you claim can be calculated on the base of the amount spent on the vehicle you use for business travel. The percentage of expenses incurred in connection with your business is multiplied by the tax levied.


Claiming VAT on mileage may bring economic or financial benefits to the business, but it is necessary to obey tax rules and regulations according to the laws of the courts. Most of the time you can keep accurate records of business travel and related expenses by claiming VAT on mileage. As a result, it reduces VAT work which can be useful for promoting your business.


What does claiming VAT on mileage depend on?

It depends on the tax imposed by each country and its business laws. You have to follow the rules and regulations of the country for claiming VAT on mileage.

How does it make the procedure simple?

It gives a unique mileage rate which makes the procedure very simple and easy to follow.

Is claiming VAT On Mileage beneficial to the business?

Yes, It reduces VAT work which can be useful for promoting the business. It is quite useful for business as well.

Rían Doyle

I'm a VAT professional with years of experience helping businesses with compliance and reporting. My goal is to simplify VAT calculation and provide valuable insights through my engaging writing style and clear explanations of complex concepts.