- A business can deduct 100% VAT when buying out a leased passenger car if the buyout is solely for resale.
- In the example, the entrepreneur bought the car from lease, did not use it, treated it as trading stock, and sold it the next day with 23% VAT.
- Normally, VAT on passenger cars is limited to 50% under Polish VAT rules because they are generally treated as mixed-use vehicles.
- Full deduction is possible only when the vehicle is used exclusively for business purposes, which usually requires formal rules and mileage records.
- Current interpretation says that for lease buyouts intended only for resale, full VAT deduction is allowed without mileage logs or VAT-26 filing.
Source: prawo.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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