- Poland requested a three-year extension for the 50 percent VAT deduction on vehicle-related costs on 25 February 2025
- The European Commission issued a proposal to extend this on 10 July 2025
- The 50 percent deduction applies to purchase, acquisition, import, hire, and leasing of vehicles not used exclusively for business
- It also applies to related expenses like fuel costs
- Exemptions include vehicles with more than 9 seats, vehicles over 3,500 kg, and expenses fully related to business activities
- Timeline includes request submission on 25 February 2025, confirmation on 11 April 2025, and proposal issued on 10 July 2025
- If granted, the extension will last for 3 more years
- Poland must request another extension by 31 March 2028 with a detailed report
- Businesses should apply the 50 percent deduction unless full business use is proven
- Adequate records are necessary to support full deduction claims
Source: fintua.com
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.
