- Local governments can deduct 50% of VAT from expenses on cars used for mixed activities
- Tax authorities still believe in applying double restrictions on VAT deduction
- The issue of VAT deduction for public finance sector entities is being resolved in favor of these entities by administrative courts
- There is hope that the Supreme Administrative Court will uphold the favorable rulings for taxpayers
- A breakthrough ruling in Warsaw allowed a public finance sector entity to deduct VAT without the additional 50% restriction
- The entity had to prove that the cars were used for business and statutory purposes only
- Tax authorities argued for the application of both the pre-coefficient and 50% deduction restrictions
- The issue of private use of cars by employees was also raised by tax authorities
Source: prawo.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.
