Can I register a commercial through an unused business?
Hello,
I'm an employee but also have a business name registered which I only used for sideline contacts a handful of times 20 years ago. I was going to register for VAT for the sole purpose of buying a used commercial SUV and availing of the €333 tax rate. I don’t intend to trade as I’m happy enough staying as an employee. Would this be possible or classed as fraud?
Regards
Dave (MALAHIDE DUBLIN)Feb 2025 Filed under: taxation
Expert answer
Hi Dave,
I’m not sure if would class as fraud as such, as nobody except you knows that you don’t intend to trade (though I’d advise you get actual legal advice on that, as that’s not our remit). However, a vehicle registered for commercial use cannot be used for any personal reasons and if you’re stopped, for example, bringing the kids to school in the SUV, then you are liable to a fine.
Aside from all that, you’ll be required to submit VAT returns and other accounting paperwork for the dormant business that will cost you at least some time, most likely some money, so you need to do the sums on that and calculate whether it’s worth the hassle.
Sounds like an awful lot of trouble to go to just to reduce your annual motor tax.
Shane O' Donoghue - Complete Car Advisor