EU Approves 50% VAT Deduction on Cars for Mixed Use Until 2028

• Current VAT deduction rules for cars used for mixed purposes will remain until the end of 2028
• Individuals using cars for both business and private purposes can deduct only 50 percent of VAT for the next three years
• Preliminary agreement for extending Poland’s derogation until 2028 has been reached
• Formal approval is expected on September 22 at the EU Council meeting
• Full VAT deduction is only possible if the car is used exclusively for business
• Poland requests this VAT deduction due to the specific nature of its market
• The derogation applies to VAT on car purchase, import, rental, leasing, and related expenses

Source: podatki.gazetaprawna.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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