Company Cars for Mixed Use: Pre-coefficient First, Then 50% VAT Deduction

• Polish tax authority ruling clarifies VAT deduction rules for company cars used for mixed purposes both business and personal use
• Taxpayers must first apply the pre-coefficient from Article 86 section 2a of VAT law before applying the 50 percent deduction limit
• Case involved an association conducting both commercial and statutory activities funded by grants that provides cars to employees
• Cars were used for official purposes related to both business and statutory association activities
• Supreme Administrative Court confirmed the double limitation approach requiring both pre-coefficient calculation and 50 percent VAT deduction cap

Source: podatki.gazetaprawna.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.

---

---