Yes, you can reclaim VAT on mileage expenses. Please note, however, that HMRC says that VAT can be reclaimed only on the fuel part of the mileage expense.
The fuel rates are calculated as per HMRC’s Advisory Fuel Rates.
While creating a mileage expense, make sure the checkbox against Reclaim VAT? is selected.
Once you select the checkbox, three additional fields will appear,
The Fuel Type and Engine Capacity are asked so that Zoho Books can calculate the cost of fuel for the distance you’ve traveled in a vehicle.
The VAT that is applicable on the purchase of fuel is then calculated using these rates.
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