- The German Federal Ministry of Finance (BMF) has issued a new letter confirming that the VAT treatment of fuel supplies under fuel card systems aligns with criteria established in a 2004 letter, providing legal certainty for the industry in Germany regarding chain transactions and input VAT deductions.
- The new guidance does not incorporate the commissionaire scheme referenced by the EU VAT Committee, which is seen as a preferred model for chain transactions involving fuel cards, and it does not address scenarios involving more than three parties in transactions.
- While the BMF’s letter ensures legal clarity for fuel card transactions within Germany, fuel card issuers must still consider the varying VAT regulations in other countries where their customers use fuel cards, particularly as some jurisdictions may rely on the EU VAT Committee’s guidelines.
Source: kmlz.de
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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.
