- Limited VAT Deduction for Mixed Use: The VAT Act now presumes that motor vehicles, including electric cars, are used for mixed activities (both business and personal), allowing only 50% of the input tax on related expenses to be deducted.
- Definition of Mixed Use: A vehicle is considered to be used in a mixed manner if it can be used for personal purposes, even once. This impacts various expenses related to the vehicle, such as purchase, fuel, maintenance, and leasing costs.
- Requirements for Full VAT Deduction: To potentially claim 100% of the VAT on vehicle expenses, taxpayers must maintain detailed records, including mileage logs, to prove that the vehicle is used solely for business purposes, thereby rebutting the presumption of mixed use.
Source Prawo
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