EC Extends Poland’s VAT Derogation for Passenger Cars Until 2028, Limits Deductions to 50%

• The European Commission adopted a proposed decision to amend a previous decision regarding Poland’s VAT rules.
• The amendment extends Poland’s authorization to limit VAT deductions for passenger cars used partially for non-business purposes.
• Poland can limit the VAT deduction to 50 percent for expenses related to these cars.
• The authorization is extended to December 31, 2028.
• Poland must submit any further extension requests by March 31, 2028.
• The decision expires on December 31, 2028.

Source: news.bloombergtax.com

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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