By letter registered with the Commission on 18 February 2022, Poland requested an extension of the derogation from Article 26(1), point (a), and Article 168 of the VAT Directive in order to (i) continue to restrict to 50% the right to deduct input VAT on the purchase, intra-Community acquisition, import, hire and lease of motor vehicles which are not used entirely for business purposes and expenditure relating to those vehicles, and to (ii) not treat as supplies of services for consideration the use, by a taxable person or one’s employees, of vehicles covered by the above limitation on the right to deduct input VAT for purposes other than business activity conducted by the taxable person.
In accordance with Article 395(2) of the VAT Directive, the Commission informed the other Member States by letter dated 15 March 2022 of the request made by Poland. By letter dated 16 March 2022, the Commission notified Poland that it had all the information it considered
necessary for the appraisal of the request.
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