In May 2019, Court of Justice of the European Union proclaimed that fleet cards are only a payment solution what means that VAT cannot be reclaim. This judgment has been annoying for leasing companies which reduced the cost on reclaiming VAT on expenses.

The companies which use fleet cards have to check what are the exact conditions in the agreements between the petrol stations which deliver these cards and clients. It shouldn’t be problem to reclaim VAT.

More complicated situation occur when the fleet card supplier is not a petrol station. Some tax experts have mentioned that in case of “chain transition” between petrol station – fleet card company and client, the VAT should not be reclaimed by the client.