Poland Confirms 50% Input VAT Deduction for Business Use of a Second Electric Car

Summary 

• A sole trader may deduct input VAT on the operating costs of both an electric car and a combustion-engine car where both vehicles are used in the taxable business. 

• The fact that the business already has a combustion-engine vehicle does not, by itself, prevent deduction for the electric car where the taxpayer can demonstrate a business rationale for using both vehicles. 

• Where the vehicles are also used privately, the deductible share is 50%; the published article does not state that the taxpayer met the conditions for a 100% business-only deduction. 

Extended article 

The reported individual interpretation concerned a professional who used a combustion-engine car for longer journeys and an electric car for urban travel, with each vehicle also serving as a substitute when the other was unavailable. The tax authority accepted that both vehicles could be connected with the business activity. 

For VAT purposes, the relevant issue is the actual link between the vehicle expenses and taxable economic activity, not whether the business already owns another vehicle with a different powertrain. Mixed business and private use leads to the statutory 50% input VAT limitation. A full deduction would require compliance with the separate conditions applicable to vehicles used exclusively for business purposes. 

Businesses should retain evidence supporting the commercial use of each vehicle, such as travel patterns, client locations and internal vehicle-use rules. The underlying interpretation number is not disclosed in the publicly accessible part of the source article, so it should be verified before the item is used as a technical precedent. 

Source 

• Rzeczpospolita: VAT May Be Deducted on an Electric Car Even Where the Business Also Has Combustion Cars 

• Polish Ministry of Finance: Vehicle-Related VAT Information 

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