6th VAT directive legislation

When the 6th VAT Directive legislation was introduced, it enforced that in order to claim back VAT on the fuel portion of a mileage expense, there must be proof of sufficient VAT available on accompanying fuel receipts. Alongside this, there were further stipulations introduced which are explained below.

  • The fuel receipt must preceed the mileage.
  • The fuel receipt must be dated no more than 6 weeks prior to the date of the mileage expense.

This caused significant logistical issues when trying to manually allocate the mileage expenses to the available fuel receipts, while following the rules of the 6th VAT Directive.

Selenity Expenses expenses management software helps to negate some of these issues by automating which mileage items can be allocated to specific fuel receipts, following the 6th VAT Directive rules, and then allowing you to report on this data. This ensures that the VAT on the Fuel Receipt Items covers the reclaimable VAT on the Mileage Items. Once the VAT on a Fuel Receipt Item has been fully allocated, it can no longer have any more Mileage Items allocated to it.

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