VAT Committee on ECJ C-235/18 Vega International: Fuel cards – follow-up

Consultations not dealt with in meetings

The VAT Committee has on several occasions discussed the issues resulting to the CJEU’s ruling in the Vega International case (C-235/18).

Based on past discussions and the most recent paper drawn up up after further work done. the VAT Committee just agreed guidelines with a view to overcome those issues.

CONCLUSIONS

…. the following can be concluded as regards the VAT treatment of the supplies of fuel in the context of fuel card schemes:

As indicated in the 121st meeting16, the character of a supply made in the context of a fuel cards scheme is dependant upon the person to whom the right to dispose of the fuel as owner is transferred.
If it can be established that the right to dispose of the fuel as owner is transferred to the fuel card issuer, the latter may be considered as buying and then supplying the fuel.
In a number of situations, despite the absence of such a transfer of the right to dispose of the fuel as owner to the fuel card issuer, the later may nonetheless be considered as supplying the fuel.
This happens when a supply is made under the remit of Article 14(2)(c) as then, the transfer of the ownership of the fuel in the sense of the formal legal title suffices to be regarded as a taxable ‘supply of goods’, on condition that the supplies to and from the fuel card issuer are similar and that an agreement exists between the fuel card issuer and the principal

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