The Council of the European Union allows Poland to maintain the restriction in the right to deduct input VAT related to acquisition and maintenance of passenger cars which are not exclusively used for business purposes. The current restriction applies until 31 December 2025, and it is prolonged up to 31 December 2028.
The decision also exempts the taxpayers from the obligation to treat non-business use of such vehicles, (to which restriction has been applied) as a supply of service considered as subject to VAT in accordance with Article 26(1) of VAT Directive.
The full text of the Council Implementing Decision can be found at this link.
The information contained in the alert is general and does not represent the tax opinion and does not cover all changes resulting from the proposed regulation. Before making any decision or action, as well as in case of any questions or concerns, please contact our tax advisers, tel.+48 22 250 31 00.
