- VAT Applicability on Withdrawal: When an entrepreneur withdraws a passenger car from business use for personal purposes, VAT must be charged, regardless of whether the taxpayer deducted 100% or 50% of the VAT at the time of purchase. The key factor is that the right to deduct VAT existed, even partially.
- Legal Framework: According to the Polish VAT Act, the withdrawal of goods (like a car) for personal use constitutes a supply of goods subject to VAT. This is true as long as the taxpayer is an active VAT taxpayer and the goods belong to the enterprise, fulfilling the criteria set out in Articles 5(1)(1) and 7(2) of the VAT Act.
- Tax Authority Confirmation: This interpretation aligns with the position of tax authorities, including a ruling from the Director of National Tax Information, confirming that the withdrawal of a car from business activity requires calculating and paying the VAT due, emphasizing compliance with VAT regulations.
Source Prawo
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