- The VAT classification of fuel card transactions has been uncertain since the Auto Lease Holland and Vega International cases.
- The ECJ rejected the qualification of such transactions as a fuel supply in a chain transaction.
- This uncertainty led to divergent developments at national tax administration level across the EU.
- The fuel card and logistics industry mobilised and initiated a discussion at the level of the EU Commission.
- The VAT Committee has established guidelines for fuel card transactions, stating that a supply made by the CI to the CC shall not be categorised as a fuel supply but rather a supply of a financial service.
- The Guidelines also specify conditions for a fuel card scheme to fall under Art. 14(2)(c) EU VAT Directive, and these conditions closely follow the German Ministry of Finance’s Circular of 15.06.2004.
- The Working Paper 1067 contains further explanations, and the VAT Committee Guidelines are not legally binding but may influence legal development on the topic at EU level and in the Member States.
Source KMLZ
