Fuel Cards and VAT: New Information from the Czech Tax Administration

• New information from the General Financial Directorate (GFR) regarding VAT on fuel cards.
• The information aims to unify VAT application and clarify key rules related to fuel cards.
• The information is based on the VAT Committee Guidelines and the European Court of Justice decision C-235/18 known as VEGA.
• The information clarifies conditions for the delivery of goods between involved parties: fuel supplier and card issuer, and card issuer and cardholder.
• Delivery of goods occurs if:
  • An agreement exists between the issuer and holder stating the holder purchases fuel on behalf of the issuer.
  • Ownership of fuel is transferred to the issuer, who acts as the owner, not just an intermediary.
  • The issuer’s performance is similar, meaning they do not modify the fuel.
• If these conditions are met, the card issuer is considered the fuel supplier, and the cardholder can claim VAT deduction from the issuer’s invoice.
• If the conditions are not met, it is considered a financial provision for fuel purchase, and VAT regime needs further examination.
• Businesses using fuel cards should review their contracts with card issuers to ensure compliance with the conditions.
• Assistance is available for contract review.

Source: accace.cz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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