Following our news from 24TH July, 2014 relating to fuel cards and the judgment of the Supreme Administration Court (I FSK 803/13), we would like to draw your attention to a new ruling issued recently.
In July the Court has ruled that taxpayers buying fuel and other goods on the petrol station using fuel cards are not allowed to deduct VAT from invoices issued by the fuel card emitters. According to the Court, the card emitters are not selling fuel but are providing financial services (which is exempt, with no right to deduct VAT).
In the latest judgment on the day of 15TH October, 2014 (I FSK 1478/13), Supreme Administration Court ruled in a similar case and has pointed out that tax qualification of the said transaction depends on purpose of buying fuel cards. If the purpose is to ease the transaction between the card holder and the client and to simplify financial settlements, it will be qualified as a service. But if the purpose is connected only with fuel purchase, it will be the chain transaction.
Summing up, as we have written before, the crucial thing from a tax point of view is the subject of contract between card emitter and client. That is why we suggest to review your contracts and evaluate your tax risk.
