Fuel card for self-employed workers - how does it work?

A fuel card is a smart way for self-employed people to bundle your business fuel costs, keep your administration orderly and reclaim VAT. Very handy, but how does such a card actually work? In this article, we explain everything you need to know about the fuel card as an entrepreneur.

What is a fuel card?

A fuel card is a kind of debit card that allows you to fill up at petrol stations. But sometimes you can even use it to have your car washed, parked or pay for maintenance. And instead of all the separate receipts, you get one nice collective invoice at the end of the month with everything clearly listed. Ideal for your administration!

Fuel card benefits

• Less hassle with administration: No more loose receipts, just one clear invoice.
• Getting VAT back: All VAT is on your monthly invoice, so you can easily reclaim it in your tax return.
• Time-saving: No more hassle of manually entering tank turns in your accounts.
• Clear overview: You have an overview of your business trips and costs at a glance.
• Additional benefits: Some fuel cards also offer parking, maintenance or breakdown assistance.

What about VAT with a fuel card?

Most fuel card companies (such as MKB Fuel, MoveMove or Shell Card) are listed as suppliers on the fuel card invoice. This means they collect the VAT from your refuelling and other charges and thus invoice you directly.

And what does that mean for you?

• You will receive one invoice each month with a complete overview of your costs.
• VAT is neatly listed and is usually fully deductible (provided it is business-related).
• You no longer need to keep loose tank receipts for your VAT return.

How do you process a fuel card invoice in your accounts?

• Make use of accounting software. This is because it often automatically recognises invoices from well-known fuel card suppliers.
• Put the fuel card in your company name (this way you are entitled to VAT deduction).
• Process the monthly invoice neatly in your records with the correct VAT allocation.

Tip: If you also use the car privately, you may have to make a VAT correction for that private use at the end of the year. We call this 'the VAT correction for mixed use'.

Comparison: best and cheapest fuel card for self-employed workers

Conclusion

A fuel card is a smart move for many self-employed people. Because you have your expenses under control, your administration becomes a lot easier, plus you always get your VAT refund. Compare the different providers and choose the fuel card that best suits your driving style.