VAT treatment of the Hiring of Means of Transport
The guidance in the Tax and Duty Manual on the VAT Treatment of the Hiring of Means of Transport has been updated to improve readability and to include additional information on the short term hire of passenger vehicles (paragraph 7.2.1).
Paragraph 7.2.1 Passenger vehicles, now reads:
“Passenger vehicle means a vehicle designed and constructed, or adapted, for the conveyance of persons by road. It is important to note that vehicles designed and constructed, or adapted, for the carriage of goods by road, with or without passenger capacity, are not considered to be a passenger vehicle for the purposes of the application of the reduced rate of VAT to a short-term hire. The hire of a goods vehicle is subject to the standard rate of VAT.”
For more information see Revenue eBrief No.206/20.