• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 1/24/2014

Poland - Changes to input VAT deductions for automobiles 

January 24:  A draft of changes to the rules for input value added tax (VAT) deduction for vehicles has been published, and is likely to be effective from March 2014.

The projected amendments introduce limitations of the right to claim input VAT, applicable to all expenses concerning maintenance of vehicles, in particular to purchase of a vehicle, fuel, and other costs.

Limitations will refer to the vehicles of permissible maximum weight not exceeding 3.5 tons that are used for both business and private purposes. In the case of such vehicles, the taxpayer will be entitled to reclaim 50% of VAT paid in connection with incurred expenses.

For vehicles used for business and private purposes, the right to deduct 50% of input VAT paid on the purchase of fuels will be temporarily suspended until 30 June 2015.

Read a January 2014 report [PDF 119 KB] prepared by the KPMG member firm in Poland: Changes to the rules of input VAT deduction for vehicles in 2014

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