Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 17 January to Question 23520 on Ambulance Services: Vehicles, for what reason HMRC issues guidance that ambulance services must sign up to a maintenance package in order to reclaim VAT in relation to the leasing of vehicles.

The government departments’ refund scheme applies to certain specified services that qualifying bodies choose to contract out rather than supply in-house. Where there is a single contract for the hire of a vehicle which includes repair and maintenance, recovery of VAT is allowed where the contract is for more than 30 days. VAT charged on the contracting out of repair and maintenance as a stand-alone service is also recoverable. The hire of vehicles is not a service provided in-house and VAT on the hire alone is not recoverable under the government departments’ refund scheme.