VAT-2 and who can use it

VAT-2 i kto może z niego skorzystać

If a businessman uses a car brought into a business, he is obliged to deduct the purchase and operating tax. Sometimes this involves a deduction of 50% or even 100%. to take these costs into account. The requirement is to use the car only for business purposes.

Full deduction of value added tax (VAT) is only possible when the vehicle in question is used for business purposes. Such a vehicle is deemed to be a car, the construction of which excludes other uses, e.g. delivery vans, trucks, etc. The owner should establish rules for the use of the vehicle which exclude any misuse. A necessary formality is to order a technical inspection of the vehicle, which results in the issue of a special VAT-1 or VAT-2 certificate.

What is the VAT-2

A regional vehicle inspection station carries out a technical inspection to confirm all the necessary requirements for a particular vehicle. Once the test has been carried out, a special VAT-2 certificate is issued, which must be submitted to the Communications Department for endorsement on the vehicle registration certificate. Completion of all the necessary formalities gives the right to a full VAT deduction.

In other situations, when entrepreneurs without the relevant annotation in the registration certificate, who have not performed the necessary diagnostics and have nevertheless deducted 100% of the VAT amount, will be notified of the need for correction.

Features of a car with full tax deduction

In order for a vehicle owner to be entitled to make a full VAT deduction, the car must meet certain requirements. The most important are its design features that make it unsuitable for private, non-business use. VAT-2 covers vehicles with one row of seats and a loading body that is a separate structural part. These are vans up to 3.5 tonnes.

VAT-2 and tax deduction

Full VAT deduction applies to both the costs incurred in acquiring the vehicle and in operating it. In order to deduct the aforementioned amounts, it is necessary to submit the VAT-26 form. Ideally, the completed form should be submitted to the office within 7 days from the date of the transaction (incurring of the first expense, e.g. payment of the advance). Entrepreneurs with a VAT-2 certificate should submit the VAT-26 form to the relevant tax office – in person, by sending the document by post or electronically. The formalities are dealt with immediately after sending the letter and the service is free of charge. Failure to submit the return may result in a penalty being imposed on the taxpayer. This is the case if the full amount of VAT is unjustifiably deducted or if the office is not informed of the use of the car for business purposes.

What is deductible?

Costs that may be taken into account after deduction of the applicable VAT:

• purchase, import of a car and its parts,
• purchase of fuel, gas or diesel,
• repair and maintenance services,
• other costs incurred in connection with operation.

The above costs must be evidenced by invoices giving rise to VAT deductions. It is also a requirement that both parties to the transaction are active VAT taxpayers.