Fuel vouchers: legal nature, taxation, and accounting

Abstract

In today's fuel and lubricant markets, adequate accounting and documentation for fuel voucher transactions is critical. Fuel vouchers are used as a means of retail fuel sales, allowing enterprises to effectively control vehicle operating costs and optimize fuel and lubricant logistics. Simultaneously, the legal structure of vouchers as a property right to receive a certain volume of fuel generates a variety of tax and accounting complexities that require careful oversight in the company's internal papers. The purpose of the study is to analyze the legal, tax, and accounting aspects of fuel voucher transactions, identify peculiarities of their accounting, and decide the best solution for businesses of various legal forms. The object of the research is on enterprise processes that involve the acquisition, issuing, and usage of fuel vouchers, as well as the accounting procedures and tax implications of these transactions. The research revealed fundamental methods to the taxation and accounting of fuel vouchers: free provisions to employees are regarded non-monetary income and can be structured as non-targeted charity aid or a gift with appropriate tax implications; transfer with deduction from salary is a sale of inventory that is taxed on general principles; the write-off of expired vouchers necessitates an adjustment of the input tax credit and the accumulation of compensatory value added tax obligations. Special care is used to accurately determine the time of transfer of ownership of the fuel, which affects the tax and accounting treatment of transactions. Enterprises can use the research findings to improve internal controls over fuel resource utilization, optimize tax obligations, and increase accounting efficiency.