Guidance follows conclusions of the EU VAT Committee
The General Financial Directorate (GFD) issued guidance on the application of value added tax (VAT) to fuel cards following the conclusions of the EU VAT Committee.
Under the guidance, issuers of fuel cards may act as a buyer and subsequent seller of fuel (i.e., use the “commissionaire” model and claim full VAT deduction on the supplies received), assuming the issuer proves the transfer of ownership from the fuel supplier to the issuer and subsequently from the issuer to the fuel card holder. In proving the transfer of ownership, the issuer must establish that it bears the risk of non-payment or the fuel being defective. In addition, the issuer cannot change the fuel in any way and must conclude a written contract with the fuel card holder that reflects the economic reality.
Read a January 2025 report prepared by the KPMG member firm in the Czech Republic