Can You Claim VAT on Petrol?

Can You Claim VAT on Petrol? thumbnail
VAT paid on petrol purchases for business use can be deducted.

VAT is a value-added tax levied in the European Union. VAT is based on a percentage of the value of goods or services sold. Businesses can claim VAT paid on petrol used for business journeys, deducting the amount from the VAT they have collected from other businesses.

  1. Business Use

    • Businesses have four options to claim VAT on petrol: claim all of the VAT if they use the fuel strictly for business, claim all of the VAT and pay a fuel scale charge to cover the portion allocated to personal use, claim only the amount of fuel used for business, or do not claim any VAT on petrol if mileage is low.

    Personal Use

    • If a vehicle is driven for both personal and business use, you can claim VAT on petrol using a scale charge for the part that is related to personal use. A scale charge lists the charges to be paid according to the type of vehicle used.

    Flat Rate Scheme

    • VAT is already calculated in the flat percentage. You do not claim VAT on petrol or use the fuel scale to pay for petrol used for personal trips.

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References

  • Photo Credit The modern car at petrol filling station image by terex from Fotolia.com

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