GPS in Company Cars: VAT Deduction Limited to 50% for Mixed Use

• Entrepreneurs can only deduct half of the VAT from invoices for GPS transponder purchase and installation if the company car is used for both business and private purposes
• A company asked about VAT deduction rules for cars used by employees and contractors for customer service visits
• The company currently deducts 50 percent of VAT on car related expenses like fuel, leasing payments, service and repairs
• The question concerned mobile phones connected to special car applications and GPS transponders that enable vehicle tracking and location monitoring
• The National Tax Information Director clarified that the 50 percent VAT deduction rule applies to GPS equipment when cars have mixed business and private use

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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