Full VAT Deduction on Company Car Expenses: Conditions and Court Rulings in Poland

A sole proprietor using a passenger car exclusively for business sought full VAT deduction on operating expenses. Despite keeping detailed records, submitting VAT-26, and prohibiting private use, the tax authority denied full deduction, citing the car’s potential for private use since it was parked at the taxpayer’s home. The authority allowed only a 50% deduction. The Regional Administrative Court overturned this, ruling that actual, not potential, use matters; the taxpayer’s documentation and procedures were sufficient to prove exclusive business use, entitling them to full VAT deduction.

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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