VAT deduction for company vehicles in Poland – cars, motorcycles, bicycles and electric scooters

VAT deduction for company vehicles in Poland depends on vehicle classification and actual use. Passenger cars and motorcycles used for both business and private purposes generally qualify for a 50% VAT deduction. Conventional bicycles, qualifying e-bikes and electric scooters follow general VAT rules without an automatic 50% limit. Full recovery depends on meeting the relevant statutory requirements.

---

What VAT deduction rules apply to company vehicles in Poland in 2026?

Under Article 86(1) of the Polish VAT Act, input VAT is deductible to the extent that purchases relate to VAT-taxable activities. Article 86a imposes additional restrictions on motor vehicles.

• Passenger cars: generally 50% for mixed use; 100% if statutory conditions are met.
• Motorcycles: generally subject to the same restrictions as cars.
• Bicycles and qualifying e-bikes: general deduction rules apply.
• Electric scooters: deductions depend on their connection with taxable business activities.

---

When can businesses deduct 100% VAT on company cars?

For mixed-use cars, the 50% deduction generally covers purchase, leasing, rental, fuel, repairs and maintenance.

Full deduction based on exclusive business use typically requires:

• Policies excluding private journeys.
• Vehicle mileage records.
• Submission of the VAT-26 notification.
• Effective controls over actual vehicle use.

VAT-26 must generally be submitted by the 25th day of the following month, no later than submission of the JPK_V7 file for the month of the first vehicle-related expense.

Does parking a company car at an employee’s home affect VAT recovery?

Two rulings by the Director of the National Tax Information (KIS) reached different conclusions.

On 20 March 2026, the authority refused a full deduction despite mileage records, GPS monitoring and restrictions on private use.

On 10 August 2026, it confirmed 100% VAT recovery for cars used by sales representatives starting business journeys from home. Business justification, GPS monitoring, mileage records and enforceable usage policies were decisive.

The favourable ruling does not establish a settled interpretation. Each arrangement requires individual assessment.

---

Can businesses deduct VAT on motorcycles?

A KIS ruling dated 5 May 2026, reference 0114-KDIP4-2.4012.165.2026.5.WH, confirmed a 50% VAT deduction on purchasing and operating a motorcycle used for both business and private purposes.

The restriction covers fuel, servicing, repairs and other relevant expenses.

A 100% deduction may be available for exclusive business use, subject to statutory conditions. However, the ruling did not address that scenario.

---

What are the VAT rules for electric bicycles?

Electric bicycles meeting the statutory bicycle definition are not automatically subject to Article 86a restrictions.

Their auxiliary electric motor must meet technical requirements, including 250 W maximum continuous rated power and termination of assistance above 25 km/h.

In a ruling dated 26 May 2026, KIS confirmed VAT deductibility for an electric cargo bicycle to the extent connected with taxable activities, including potentially through an indirect business connection.

However, the ruling did not determine the VAT consequences of private use under Article 8(2). The absence of a 50% limit does not guarantee full recovery.

---

Can companies deduct VAT on electric scooters?

Electric scooters used for taxable business activities generally qualify under standard VAT deduction rules.

The Article 86a mileage-record requirements do not apply. Businesses should nevertheless document the purchase, business purpose and authorised users.

Private use requires a separate assessment. Full deduction may be possible where the scooter is used exclusively for taxable activities and other statutory conditions are satisfied.

---

What documentation is required for VAT deductions?

Businesses should retain:

• Purchase invoices and vehicle identification.
• Evidence of business purpose.
• Vehicle-use policies.
• Appropriate usage controls.

An invoice issued to the company is not sufficient on its own. Expenditure must be linked to VAT-taxable activities.

Incorrect vehicle classification or deduction percentages may require VAT return corrections.

---

If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

Contact us »

***