The EU Sixth VAT Directive requires that all EU member countries impose a levy on VAT in the same way across Europe. This is due to be implemented in the very near future.
The EU Sixth VAT Directive will stop UK companies being able to reclaim VAT on invoices that are not in the registered company name.UK companies currently reclaim VAT on many items – including fuel, which is usually invoiced to employees in the form of a till receipt, not in the registered name of the company reclaiming the VAT.
Once this EU Directive is introduced in the UK this will no longer be allowed, and every litre of fuel will cost an additional 20% (or what ever the prevailing VAT rate is at the time).
Therefore it is very good advice for businesses with fleets of vehicles, both in house or so called ‘grey’ fleets, to take a good look at their fuel management procedures and implement a VAT compliant solution, such as a fuel card account from The Fuel Card Expert