The Ministry of Finance prepared a general interpretation explaining how to correctly qualify for VAT purposes fuel card transactions carried out in the tripartite model. It will make it easier to determine the nature of transactions for VAT purposes. Depending on the circumstances of the transaction, we may be dealing either with the supply of goods or with the provision of services. The application by the taxpayer to the general interpretation will enable the protection of its tax settlements.
In the framework of the fuel card schemes in which they participate, which are currently on the market three entities:
- one from entities (e.g. lessor, parent company) make available to the counterparty fuel cards that it is not an issuer;
- second entity - this counterparty (e.g. lessee, subsidiary) by means of the above-mentioned cards buys the goods from third entity - supplier operating the fuel station (e.g. fuel company).
A fuel card transaction should be classified as providing services if the following conditions have been met cumulatively:
- the purchase of fuel by the consignee (card holder) has taken place directly from the service station suppliers;
- only the recipient determined how to purchase the fuel (the choice of the place of purchase), the quantity and quality of the fuel, the moment of purchase and the way the fuel is used;
- the recipient (excluding the intermediary) has borne all the costs associated with the acquisition of fuel;
- the role of the intermediary was limited to making available to the recipient of the financial instrument (fuel card) allowing the purchase of the goods.
Notwithstanding the above, the Ministry of Finance informs that by virtue of the Act of 27 November 2020 amending the Goods and Services Tax Act and certain other laws, 1 January 2021 has been repealed Article 7(8) VAT Act. At the time of the removal of this provision from the legal order, there was a loss of time and thus the protective power of the individual interpretations of that provision.
The actuality of an individual interpretation is closely linked to the period during which the provision in question applies.
Individual interpretations, on the other hand, retain their protective power (on principles resulting from Article 14k-14m Tax Ordinance) as regards the period during which the provision interpreted remained in legal circulation.
However, it should be stressed that taxable persons having individual interpretations issued in respect of the provision Article 7(8) The VAT Act can continue to benefit from the protection resulting from it in respect of the settlement periods before 1 January 2021