Courts Support Taxpayers: Full VAT Deduction Allowed for Business Cars Parked at Home

In Poland, a car is considered solely for business use, allowing full VAT deduction, if usage rules and records exclude private use. While businesses can deduct 100% VAT even if a car is parked at the owner’s home, the tax authorities often dispute this, arguing that home parking suggests potential private use and thus disallows full deduction. Despite a growing number of disputes and courts increasingly overturning the tax office’s strict stance, the case of an installation company whose employees parked company cars at their residences, despite a company policy prohibiting private use, highlights this ongoing conflict.

Source: prawo.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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