MANAGEMENT OF VAT ON THE PURCHASE OF A CAR IN THE BUSINESS
DOI:
https://doi.org/10.58246/sjeconomics.v26i3.169Keywords:
full deduction of VAT on the purchase of company car, 50% deduction of VAT on the purchase of company car, motor vehicles lack of recognition for passenger cars and the input VAT, special vehicles and the VAT charged, long-term rental cars and input VAT, purchase of consumables and fuels for cars and input VATAbstract
The article presents the advantages and disadvantages of the new provisions of the Act of VAT in force in Poland after 1 April 2014, for the purchase of cars, spare parts and fuel for the car companies. New rules introduced general presumption use by taxpayers of vehicles both for business and for private purposes. In this case, the taxpayer is entitled to deduct 50% VAT from
the purchase invoice passenger car, the lease and all operating costs, including the purchase of fuel.
If the taxpayer declares the use of a car for business purposes, then he is entitled to 100% reimbursement of VAT, but must prove a meticulous records.
As follows from the study presented in the simulation, on the purchase of a car in a variety of prices, under an operating lease, the new rules of VAT are more favorable to business buyers more expensive cars.
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