VAT Reclaim Info

Impending EU Legislation

Currently the UK is the only country in Europe that authorises businesses to claim back VAT on fuel that has NOT been purchased directly i.e Fuel purchased by the driver then reclaimed via expenses etc.

The latest available information suggests that businesses will still be able to reclaim VAT on fuel bought by individual drivers but only if they supply a VAT receipt for each transaction. However, this means that pay and reclaim schemes will be under greater scrutiny by HM Revenue & Customs. Receipts must meet or exceed the value of the fuel purchased and the value of the fuel being claimed, irrespective of how the mileage is calculated. This has been challenged under European Legislation.

Is your business prepared?

Fuel Cards are the perfect way of being prepared for the possible change in UK law. By using a fuel card you remove the need for pay and reclaim, all invoices are fully itemised and Inland Revenue/VAT approved.

Fuel Card accounts are held in a company name (where relevant), therefore all fuel is purchased directly by the company and all VAT can therefore be reclaimed without the need to supply individual VAT receipts – the ideal solution!