The taxation office confirms that the costs associated with the usage of the car in the company can be included in corporate expenses even if it is occasionally utilized for private purposes and if the entrepreneur does not have the right to drive it. For entrepreneurs utilizing passenger cars in business activity there is good news. Fiskus applies a very liberal approach to the accounting of expenditure on vehicles at company costs, without hindering private trips or the deficiency of a driving licence.
The last taxation explanation afraid the one-person activity of taxation advisor, who plans to acquisition a passenger car for an amount of little than PLN 150 thousand, due to the request to travel to customers and public institutions. The entrepreneur points out that the car will be utilized for both professional and private purposes and besides informs of the deficiency of its own driving licence, which requires the assistance of another drivers. Amortisation deductions from the first value of the vehicle (up to PLN 150 thousand) can be full included in the costs, taking into account the participation of the entrepreneur in the car (in this case 95%).
Is it possible to take account of the cost of the car in the company?
According to the regulations, expenditure on buying a durable car is included in the cost of obtaining gross through depreciation write-offs and the expenditure on operating the car is accounted for directly. However, if the car is besides utilized privately, only 75% of expenditure can be credited as a company cost.
The entrepreneur claims that specified a settlement is possible by arguing that the car is linked to the receipt of income from business activities and taxation rules do not make this dependent on the payer having a driving licence.
What was the fiscal response?
He agreed with the argument put forward, allowing the car to be credited, whether for professional or private purposes. In addition, expenditure on the operation of the vehicle (up to 75%) can besides be settled in costs, including participation in the car of the assigned entrepreneur (interpretation No 0113-KDIPT2-1.4011.19.2024.4.MAP).
This is not the first case of a favourable explanation of company vehicles. A fewer months ago, the taxation granted a akin solution to an entrepreneur operating in the IT industry, which confirms flexibility in applying taxation rules in the context of the usage of business cars (interpretation No 0115-KDIT3.4011.599.2023.2.AD).
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