The 2017 Finance Act implemented a five-year plan (from 2017 to 2022) to align the VAT deductibility rate for gasoline with that of diesel.
The VAT paid on petrol in 2021, for passenger cars and for commercial vehicles was deductible at 80%.
Henceforth, since January 1, 2022, the VAT on gasoline and diesel is fully aligned since it is:
- 80% deductible for passenger vehicles (referenced M1: see letter J on the French vehicle registration card);
- 100% deductible for commercial vehicles (referenced N1: see letter J on the French registration card).
Consequently, the amount of VAT paid on petrol and diesel and to be recovered will be similar.
For more information, contact our experts.
Source: French Official Tax Bulletin (in French)
