Polish Business Car Expenses: What You Can Deduct

Navigating business expenses in Poland, especially when using a private car, can seem complex, but understanding the rules makes it straightforward. If you're an entrepreneur running a *JDG* (jednoosobowa działalność gospodarcza) and use your private vehicle for both business and personal purposes, you can typically deduct 75% of your car-related costs. This applies to a wide range of expenses, including fuel, insurance, maintenance and service, and even leasing payments. This 75% rule is the most common scenario for mixed-use vehicles, offering a balanced approach to recognizing business costs without requiring extensive separate record-keeping for every trip. However, if your vehicle is used *exclusively* for business activities, you are eligible to deduct a full 100% of these operational costs. Achieving this higher deduction requires specific documentation and declarations to prove the car's sole business use. You'll need to maintain a detailed *ewidencja przebiegu*, which is essentially a mileage log meticulously recording every business journey. Furthermore, for VAT payers, you must submit a *VAT-26* declaration to the tax office, formally stating the vehicle's exclusive business purpose. Without these, the 75% deduction remains the standard for most entrepreneurs managing their *PIT* (Personal Income Tax) and *VAT* (Value Added Tax) obligations. The choice between the 75% and 100% deduction depends on your specific business operations and willingness to manage the administrative burden. While the 100% deduction offers greater tax savings, the requirement for a precise *ewidencja przebiegu* and the *VAT-26* declaration means a higher level of record-keeping and compliance. For many foreign entrepreneurs in Poland, the 75% deduction provides a simpler path, allowing them to claim a significant portion of their costs without the need for constant mileage tracking. Always ensure your records, whether for mixed or exclusive use, are accurate and readily available for potential tax audits. Managing car expenses is just one piece of the puzzle when running a business in Poland. From calculating *ZUS* contributions to handling *PIT* and *VAT* taxes, and preparing for the upcoming *KSeF* e-invoicing system, the administrative load can be substantial. Rozlio is designed specifically to simplify these complexities for English-speaking entrepreneurs like you, helping you manage your finances efficiently and stay compliant with Polish tax regulations without the usual stress.