Full VAT Deduction for Car Rentals: Favorable Ruling for Businesses by Tax Authority

• A company renting and managing properties purchased cars solely for rental purposes.
• The cars were not used by employees or for mixed purposes, only for rental services.
• The company questioned if they could fully deduct 100 percent VAT on expenses like purchase, leasing, fuel, and service.
• The Director of the National Tax Information confirmed full VAT deduction is allowed for cars used exclusively for rental.
• No need to maintain vehicle mileage records or submit VAT-26 information if cars are used solely for business rental purposes.
• Lack of appropriate PKD code in the National Court Register does not affect the right to VAT deduction.
• The interpretation is significant for businesses renting cars, allowing full VAT deduction without additional record-keeping obligations.
• It benefits companies without a PKD code for vehicle rental in the register but who actually conduct such activities.

Source: mddp.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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