UK hauliers hit by VAT chaos
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• Six out of 10 hauliers who operate on the Continent do not bother to reclaim VAT on European fuel bills because of the "administrative nightmare", according to a survey of Shell's Euroshell fuel card customers.
As a result many small hauliers are losing out on thousands of pounds. In Italy, for example, VAT is charged at 19%, while France levies 18.6% and Germany 14%.
The Freight Transport Association, which runs a VAT recovery service for its members, agrees with the survey's findings.
It says that many operators experience delays when claim forms are rejected because they are not filled in correctly_ The FTA recently returned a VAT cheque for £6,000 to one of its members: it charges 10% for the collection service. "The money recovered can be the difference between make or break for small operators," it says.
Shell says that in future it will invoice its Euroshell customers net of VAT and will recover the European VAT itself. "Many of our customers do not reclaim VAT on fuel purchases abroad because they say it is too much trouble," says David Watson, Shell Cards' marketing manager.
Euroshell customer GB Express of Bournemouth runs 160 lorries on European work. Director Mike Pusey says reclaiming VAT abroad is "an administrative nightmare". The collection of VAT on GB's £750,000 annual fuel bill could cost up to £10,000 on administration and commission.
Shell has signed an agreement with Sealink enabling hauliers to pay for travel using the Euroshell card — the agreement is linked to discounts of up to 22%.