• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 2/28/2014

Poland - Input VAT deductions for vehicle expenses 

February 28:  New law in Poland concerns taxpayer claims for deductions of input value added tax (VAT) with respect to vehicles. The law is effective 1 April 2014.

The new VAT law allows taxpayers to claim a deduction for input VAT in connection with certain vehicle expenses—e.g., purchase cost, fuel expense, and other costs.

  • When the vehicle does not exceed 3.5 tons and is used both for business and personal purposes, there is a 50% limit on the VAT deduction (this deduction on fuel purchases is temporarily suspended until 30 June 2015).
  • When the vehicle is used solely for business purposes, the full amount of the input VAT deduction is allowed.

Read a February 2014 report [PDF 116 KB] prepared by the KPMG member firm in Poland: New rules of input VAT deduction for vehicles from 1 April 2014

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