- The need to provide too much data in order to deduct VAT on purchased cars used for business purposes is too restrictive - says Mariusz Korzeb, expert of the Employers of Poland.
The information form VAT-26 is meant to allow a deduction of the whole VAT on cars used exclusively for business purposes. Draft of the form presented by the Ministry of Finance may discourage entrepreneurs from using this tool. The sheer need to submit this information and keep records makes this institution onerous and complicated.
The Ministry proposes that businesses provide such data as: the car make and model, colour, registration number, year of manufacture, date of purchase of the vehicle, the date of the first expenditure incurred and the date of changing the car’s status into business use only. Such an extensive array of questions will require spending a lot of time to complete the information form, especially in companies that have a fleet of considerable size. Moreover, we should bear in mind that with any change (such as colour of the vehicle) updated information will have to be submitted. Therefore, it is reasonable to resign from at least some of the proposed changes – as they do not have any effect on how tax liabilities are settled and whether it is done properly.
Mariusz Korzeb, expert of the Employers of Poland