Complete overview of the Fuel Card: what is it, how to use it, those who can use it, regulations, board structure, tax deductibility
The purchase of a motor fuel at the motorway service stations by subjects with VAT, must be documented with the fuel card. The record of these purchases is in lieu of the purchase invoice (Article 1, paragraph 1 of Presidential Decree 444/1997).
The invoice is forbidden to station managers distribution of motor fuels, except for transfers made to the State, certain authorities and hauliers of things for third parties. The prohibition on the issuance of the invoice is not about the oil companies, but only iGestori.
From May 14, 2011, the VAT subjects who have fuel purchases exclusively by credit cards, debit cards (ATM) or prepaid cards issued by financial operators required to report the tax rolls (Article 7, paragraph 6 Presidential Decree 605/1973), they can avoid compiling the fuel card. To recover the deductible VAT on the purchase of motor fuel, made with cash, credit cards or pre-paid, it is possible to separate the tax card statement address, which is registered as a fuel card purchases in the VAT register .
The Inland Revenue with Circular 42 / E of 9 November 2012, has also clarified that the two modes of documentation (fuel card or electronic systems) are alternative to each other, then it would be impossible for their use at the same time. Who pays for the fuel by means other than electronic means, it must use a card for all purchases made. Those who decide to pay exclusively with electronic charts may choose to use the new method or it can continue to use the fuel card to deduct the cost and deduct the VAT.
On the occasion of the appointment of Telefisco, 2013, the Tax experts have made it clear that the exclusivity in the rules for the certification of these operations do not affect the possibility for the taxpayer to spend during the year from the old to the new certification system. This change can be made (recommended by the Revenue) from the day following the conclusion of transactions for VAT payment and it seems possible (during the year) only to switch from fuel card to the electronic mode, but not vice versa.
According to the Inland Revenue, the provisions introduced by the Development Decree 70/2011 regarding the exemplification of the obligations does not eliminate the need to verify the facts that connect the purchase of fuel to the purchaser, to allow the deduction of VAT and deduction of the cost.
The payment card it must be addressed to the person who performs the activity and from the statement of the same card must emerge all the information required to identify the purchase, such as the date and the person from whom it was refueled, and the amount paid. These guidelines constitute the content "minimum" to allow both the deduction for VAT purposes and the deduction of the cost.
Here is a small excerpt from the handbook Il Sole 24 Ore
II certification system `s purchase of fuel with fuel cards or electronic cards must be reported to the person` s set in a unified manner, it being immaterial whether there `s more vehicles used in the conduct of the activity, then, must be the same for all vehicles of the taxpayer
It is not necessary that the electronic paper is used exclusively for the purchase of fuel, but at the same time if this latter, are bought other goods or services, it is necessary for the purchase of fuel should be through a
separate transaction
Whereas the individual companies and professionals are not required to hold a current account dedicated to the activity carried out, it is not necessary that the card is used only for purchases related to the activity
The simplification introduced by Decree n development. 70/2011 does not contain any exception to the prohibition on the issuance of the invoice by the operators of distribution systems which continues to operate
It is mandatory Issue of invoices for the purchase of fuel is not carried out at the roadside service;
• carried out at the plants, but not for all `haulage (for example, stationary engines, special means, operating machines, such as tractors, excavators, means of bleeding);
• where there is no personnel distribution (self-service);
• using the application called "netting" (circular N ° 205/E/1998);
• performed by hauliers of things for third parties, by the State, local governments, academic institutions and entities hospital assistance and charity 06 CARDS
Credit cards, debit or prepaid cards that allow you to avoid the compilation of fuel cards are only those issued by banks, by the Italian Post Office, financial intermediaries, investment firms, collective investment savings, asset management companies, as well as any other financial operator, who are obliged to
communicate all `tax office` s existence of relationships with their clients under Presidential Decree 605/1973, no. 605. They are not included in the menu cards issued by oil companies
FOCUS ON THE ISSUES THAT FEATURES OF THE DEDUCTION OF VAT FOR THE LEVY OF FUEL
Below is an explanation, in addition to some normative references to the Manager is required to both the operator and entity subject to the regulations for the tax deduction.
The fuel card has distant origins having already been provided for by DM June 7, 1977 pursuant to art. 2, L. February 21, 1977, n. 31. The Presidential Decree 444/1997, issued pursuant to the authority granted by L. 626/1996, has reviewed the matter, both by introducing new and different requirements with respect to the Ministerial Decree June 7, 1977 (consequently deleted) is reiterating the principles already contained in the decree and confirmed by the practice formed from 1977 until 1996.
In the light of the legislation passed the fuel card: born, in the interests of simplification, as a document of the replacement tax bill of art. 22, Presidential Decree October 26, 1972, n. 633, then also become a matter for direct taxes and therefore represents the document "necessary" to document the purchase and its inherent with the business of business (or professional) exercised.
Function of the fuel card
Deductibility Tax Deductibility direct taxes
From the objective point of view, the discipline of fuel card does not cover fuel purchases:
• carried out at points of sale other than roadside service;
• not intended for automotive applications;
• whose destination can not be ascertained at the time of purchase;
• carried out with the use of special contracts in use in the oil industry (for example, the "netting").
In the aforementioned situations, therefore, are subject to the general rules relating to billing.
The application of the rules in question shall also be excluded for practical reasons guessed, in all cases where it is impossible for the certification of purchases for lack of personnel deployment, such as supplies made during the closing time with the equipment automatic.
Still, by express provision of Art. 6 of the Presidential Decree 444/97, are excluded from the provisions under consideration the supply of fuel carried by the operators of the roadside service to the State, regional or local authorities, the university and the hospitals of assistance and charity, as well as for drivers of things third parties (the latter category has been inserted by art. 1, paragraph 109, of Law n.266/2005).
SOGETTI EXCLUDED
Are excluded from the discipline of fuel card:
a) purchases not made at the roadside service;
b) purchases made at distribution facilities not intended for automotive applications (eg, stationary engines) or of which the destination can not be ascertained at the time of purchase;
c) all cases of inability to certification of fuel purchases for lack of personnel involved in the distribution (for example, supplies made during the closing time through the equipment referred to as "self-service pre-payment");
d) purchases of fuel made at merchants roadside service by the State, local governments, academic institutions and entities hospital, assistance and charity, by hauliers of things for third parties.
The fuel card has:
a free form;
a minimum content of art. 2, Presidential Decree 444/1997.
The decree is attached a diagram of the board, not mandatory in form, but mandatory in substance: in CM 205/E/1998 reads, in fact, that the obligation of the fuel card
→ "(...) shall be deemed properly discharged if the document is in substance conforming to the model attached to the presidential decree. It must contain, that is, all the elements and directions therein even if, formally, may contain other data, take other forms or different sizes according to needs of the user. "
The key issue is that it contains the essential elements, without which the compilation is deemed illegal, then the contents contestable both in terms of income and in terms of VAT deduction.
THE SHAPE OF THE FUEL CARD
There is a form attached to Presidential Decree no. 444 of 10 November 1997 free-form, provided it contains the essential elements
Who should be referred to the board
The fuel card must be reported:
vehicles made payable to the taxpayer subject to VAT;
to vehicles owned by the taxpayer subject to VAT, for example by way of lease, rent, loan, etc.. (The title of ownership must be properly documented).
What does the person who owns
On the subject fuel card holder of the document must specify:
its own header, also by affixing a stamp complete with VAT number, in the case of a sole proprietor. In case of a company, must indicate the name, while the trades and professions required to indicate your name and surname;
the extremes of vehicle detection (plate or vehicle identification number);
reference month;
the location of the permanent establishment in Italy to persons domiciled abroad.
Duties of the Manager
The Manager must provide for each supply:
the date;
the total price inclusive of VAT;
the name of the distributor, or surname and name if natural person;
the location of the plant, also by means of an appropriate marking;
affix the signature validation.
Frequency
The fuel card can be filled out either monthly or quarterly and you need a tab for each vehicle used in the conduct of its business. So, in the case of more than one vehicle to fill a card for each individual car.
Ctr Lazio Judgment no. 223/04/2012
The board fuel has been the subject of numerous times by both judgments of the lower courts that the judges of legitimacy.
Finally, it highlights the sentence no. 223/04/2012 of the Lazio Ctr which has for its object the following dispute:
assessment for the year 2003, which ignores, among other things, the deductibility of fuel costs for omitted or incomplete compilation of the data provided by the fuel tax law as evidence of the cost incurred;
the Provincial Tax Commission of Rieti has partially upheld the appeal, confirming some shots and partly reversing the recovery on the disallowance of costs for fuel allowing the deduction on the basis of a sworn expert testified that part of the inherent character, competence and the exact quantification of the costs incurred;
the Provincial Directorate of Rieti of the Revenue filed an appeal claiming the substantial nature of the completion of the ballot fuels to the deductibility of the test and the cost effectiveness and pertinence exposed. Complaining also failure to consider both of the first judges of contradictions consumption in the same skill proposal as evidence.
On appeal to the Lazio Ctr argued that:
the fuel card corresponds to "a simplified procedure for taking the burden of proof based on virtually self-declaration of stakeholders. Particularly in view of the purpose of the memory cards complete them can not be considered merely formal fulfillment of replacing the same, in a regime of trust, which is well suited to the spirit of the Statute of the taxpayer, the billing of transactions for the purchase of fuel , becoming then the same probative value of the invoices that replace ";
"So to be deductible expenses for fuel must be, for the purposes of proof of their subsistence and inherence, fuel cards to complete in their entirety and duly signed."
In essence, according to the Regional Tax Commission:
→ the cost of fuels used on motor vehicles is deductible only with the fuel card filled out in its entirety.
Ctr Lazio Judgment no. 223/04/2012
The fuel card, complete in all its parts, is the only means of bringing in legitimate deductions expenses relating to motor fuels, it is therefore not permissible for any evidence equivalent.
The Roman judges added that the compilation of the data is also needed for construction machinery such as forklifts and shovels because the concept of transport is believed to be attributable to the presence of a suitable motor to give the vehicle an autonomous movement (the number of miles paths must be replaced with the number of hours of use); these, albeit only used within the construction site, are nevertheless characterized by the identical presence of a motor suitable to impart to the vehicle an autonomous movement (Supreme 5721/77).
Fuel card purchases overtaken by traceable
The ruling provides the opportunity to recall that Article. 7, paragraph 2, letter. p) of the Decree Law n. 70/2011, converted into Law no. 106/2011, has integrated the art. 1 of Presidential Decree n. 444/1997, exempting from the obligation of keeping of fuel subjects
→ "[...] that carry fuel purchases exclusively by credit cards, debit or prepaid cards issued by financial operators subject to mandatory reporting provisions of art. 7, sixth paragraph, of Presidential Decree of 29 September 1973, no. 605 [...]. "
05/04/2013
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Translated via software
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Source:
Italian version of CercaGeometra.it