New circular regarding VAT treatment of fuel card transactions
The new BMF circular confirms that the criteria of the BMF circular of 15 June 2004 for the distinction of chain transactions and financial services in the vehicle leasing sector is also applicable to transactions in the fuel card business.
A chain transaction in the supply of fuel from the oil company to the issuer of the fuel card and from the latter to the user of the fuel card can only be assumed under the conditions set out in the BMF circular of 15 June 2004. In particular, there must be no separate agreement on the granting of credit, and the vehicle must be visibly refueled in the name and for the account of the fuel card issuer. The fee for the transaction must be agreed separately between the parties at each stage of delivery, and any defaults must be enforced in the relevant contractual relationship. If one of these conditions is not met, the BMF considers the transaction to be a financing transaction. In this case, only the fuel is delivered from the oil company to the fuel card user, with the fuel card issuer merely pre-financing the purchase of the fuel.
Key takeaway
The circular is based on the ECJ rulings in the Auto Lease Holland and Vega International cases and clarifies the criteria for distinguishing between chain transactions and financing services also apply to fuel card transactions. For cross-border cases, the guidelines of the VAT Expert Group, which only assume a chain transaction in the case of commission transactions, should also be considered. It is still unclear whether these principles can also be applied to e-charging services.
