What scenario allows recovering input VAT on fuel in a business context?

The scenario that allows for recovering input VAT on fuel in a business context is when the fuel is used for business-related journeys and proper records are maintained. Businesses can reclaim input VAT as long as they can demonstrate that the purchases are directly related to their business activities. This means that detailed records must be kept, including receipts and logs that track fuel usage specifically for company trips.

When fuel is used exclusively for personal trips, or solely for promotional activities, it does not qualify for input VAT recovery since these expenditures are not deemed to support the business's operations. Additionally, while employee reimbursements for fuel can occur, the company generally cannot recover input VAT through this process unless it directly incurred the VAT at the purchase level and can show valid documentation. This is why maintaining accurate records for fuel used in business-related journeys is crucial for a business seeking to recover input VAT.