In Poland, when a business vehicle is transferred from commercial use to private ownership, the transfer is treated as a taxable supply and VAT must be charged. The rule applies regardless of whether the original purchase allowed a 100% or 50% VAT deduction, as confirmed by a 2025 tax authority interpretation.
The rule applies immediately upon the transfer of the vehicle from business to private use, as per Polish VAT law and the 2025 interpretation.
No, the VAT liability on withdrawal applies regardless of whether the original deduction was 100% or 50%.
The rule is based on Article 5(1)(1) and Article 7(2) of the Polish VAT Act, confirmed by the 2025 tax authority interpretation.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
TaxFoundation · 1 day ago
Poland’s Ministry of Digitalization has launched a public consultation on a new 3 % digital services tax (DST) that would broaden the existing 1.5 % rate to cover targeted advertising, multilateral digital interfaces and monetisation of user data, while exempting regulated financial services, direct online sales and publishing. The proposal would apply to companies with global revenue of €1 bn and Polish revenue above €6 m (PLN 25 m), and the government expects to raise about €400 m (PLN 1.7 bn) in 2027, roughly 0.3 % of total tax revenue. The article argues that the DST would impose a heavy burden on large multinationals, trigger potential US retaliation, and that a VAT reform would be a more efficient alternative.
Bloomberg Tax · 6 days ago
Poland's Ministry of Finance has opened a consultation on draft explanations for a VAT exemption covering defense-related supplies financed by the EU SAFE instrument amid the Russia‑Ukraine conflict. The exemption permits suppliers to deduct VAT paid at the preceding stage, requires a VAT exemption certificate stamped by the competent authority of the purchasing entity’s EU country, and applies to the final transaction in the supply chain as well as to supplies and intra‑Community acquisitions.
Bloomberg Tax · 7 days ago
The European General Court issued a preliminary ruling on 11 February 2026 (Case No. T‑689/24) confirming that Polish input VAT can be deducted upon receipt of the invoice, not at the time of purchase. The decision, which cites EU Directive 2006/112/EC, applies to a Polish gas and electricity clearinghouse and clarifies the timing of the deduction right for Polish VAT authorities.
Crowe · 9 days ago
On 2 December 2025, the Court of Justice of the European Union ruled that the right to deduct VAT arises when a taxable transaction occurs, not when the invoice is received. The decision invalidates Polish rules that tie VAT deduction to invoice receipt, allowing businesses to claim VAT earlier if the invoice is received before the tax return deadline. The ruling is expected to improve cash flow for companies across the EU.
MDDP · 9 days ago
The General Court ruled that Poland’s requirement of invoice possession for VAT deduction is incompatible with EU law. Polish taxpayers can now deduct VAT in the month of liability if the invoice was issued before the tax return submission, rather than waiting for the next accounting period. The decision is expected to accelerate VAT recovery and improve cash flow, especially under the mandatory KSeF e‑invoicing system.
Crowe Poland · 9 days ago
Crowe Poland outlines draft amendments to Poland's VAT regime scheduled to take effect July 2026. Key changes include a VAT warehouse system, removal of duplicate inventory reporting, elimination of reporting for tax‑exempt purchases, and repeal of the 14‑day VAT payment rule for intra‑Community transport acquisitions. The amendments aim to simplify compliance and reduce VAT evasion risk.
