Director of Tax Information: Home-Based Business Can’t Deduct Full VAT on Car Expenses, Courts Disagree

• Director of National Tax Information ruled that a taxpayer running a business from home cannot fully deduct VAT on car expenses.
• The decision was based on the car being parked at the taxpayer’s residence, suggesting potential private use.
• Courts have ruled differently, allowing full VAT deduction in similar cases.
• The taxpayer planned to use the car solely for business purposes, including rental for weddings and IT services.
• The taxpayer had a designated parking space for the business car and aimed to prevent private use.
• Despite these measures, the tax authority did not confirm exclusive business use due to the car’s location at the residence.

Source: ksiegowosc.infor.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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