Ask The Expert – What is the EU sixth VAT Directive?

 

Currently UK companies can claim VAT on items such as fuel, which can be invoiced to employees in the form of a till receipt and not in the registered company name. With the EU sixth VAT Directive, this will no longer be possible.

The directive requires all EU member countries to impose a levy on VAT in the same way.  This uniformity will mean that every liter of fuel will now cost UK companies an additional 20% (or whatever the then rate of VAT may be).

With this in mind, it is a good idea for businesses using vehicles, either commercially or ‘grey fleets’ to pay close attention to their fuel costs and also ensure that the have a VAT compliant solution in place.

 

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