VAT on fuel
Recovery by a company of the VAT paid on fuel, at rates that depend on the vehicle type (passenger or commercial) and on the fuel used.
Definition
VAT on fuel refers to the share of VAT a VAT-registered company can recover on its fuel purchases in France, insofar as the vehicle is used for business purposes. The recovery rate is not uniform: it depends on the vehicle type (passenger or commercial) and on the fuel, and it is codified in the French tax doctrine BOFiP (BOI-TVA-DED-30-30-40).
In detail
The basic rule distinguishes vehicles designed to carry people (marked VP on the French registration document), which face a partial limitation of the deduction right, from commercial vehicles (VU), which enjoy full deductibility.
| Fuel | Passenger car (VP) | Commercial vehicle (VU) |
|---|---|---|
| Petrol (SP95, SP98) | 80% | 100% |
| Diesel | 80% | 100% |
| Superethanol E85 | 80% | 100% |
| LPG (gaseous state) | 50% | 100% |
| CNG (natural gas for vehicles) | 100% | 100% |
| Electricity (charging) | 100% | 100% |
Petrol and diesel have been aligned since 2022: both fuels follow the same rates. Electricity enjoys a derogatory regime: its VAT is 100% recoverable even for a passenger car, making it the only fuel fully deductible on a VP.
Three cumulative conditions govern recovery: business use of the trip (home-to-work commutes are excluded), a receipt or invoice stating the pre-tax amount, the VAT rate and the VAT amount, and archiving of the documents (three-year VAT limitation period).
Two points often trap fleets:
- No combining with the mileage scale. Recovering VAT on fuel and reimbursing an employee under the mileage scale are mutually exclusive mechanisms (BOI-TVA-DED-30-30-20). The flat-rate scale already includes a fuel compensation. Adding VAT on top would amount to a double deduction.
- April 2025 tax ruling (BOI-RES-TVA-000161). It is possible to recover 100% of the VAT on a passenger car, including its fuel, when the user pays an identifiable consideration for private use (a monthly invoiced rent). To be calibrated with a chartered accountant.
Worked example
For €100 (excl. VAT) of diesel in a passenger car, the invoiced VAT is €20 (standard 20% rate). The company recovers €20 × 80% = €16. The remaining €4 goes to non-deductible expenses. For the same fill-up in a commercial vehicle, the full €20 is recovered.
Frequently asked questions
Can VAT be recovered on electric-vehicle charging?
Yes, at 100%, even for a passenger car: it is the most favourable regime. Condition: hold a compliant invoice with the VAT shown. Anonymous charging-point tickets without VAT do not allow recovery. Favour business subscriptions that issue monthly invoices.
Can VAT recovery be combined with the mileage scale?
No. The two mechanisms are mutually exclusive under the BOFiP. If the employee is reimbursed under the mileage scale, the VAT on their fuel is not deductible. If the company pays for the fuel through a business card, VAT is recoverable at the usual rates but the scale does not apply.
Related terms
- Expense report, the VAT of an expense follows the regime of the good purchased
- Mileage allowance, the flat rate incompatible with VAT recovery
- Fuel card, the payment method that produces VAT-compliant statements
