Fuel purchased abroad and the obligation to prove intangible assets


In the course of doing business, entrepreneurs sometimes have to travel outside the country. Many of them choose a company car or a private car used in the company as a means of transport. In this case, they face a dilemma - how to account for fuel bought abroad? Is it possible at all? If so, on the basis of what document? What about VAT on such a transaction?

Fuel bought abroad is tax deductible

At the beginning, it is necessary to determine whether the purchase of fuel abroad may constitute a tax deductible cost. Pursuant to Art. 22 of the Personal Income Tax Act, tax deductible costs are costs incurred in order to achieve income or secure their source, with the exception of those listed in Art. 23.

In the light of the above-mentioned provision, in order for a given expense to be considered a tax deductible cost, there must be three conditions in total:

  • the purpose of incurring the expenditure (direct or indirect) should be to generate income, or to maintain or secure the source of income,
  • this expense cannot be listed in the Art. 23 sec. 1 above the act on the catalog of expenses and write-offs that cannot be classified as tax deductible costs,
  • the expenditure must be properly documented.

This means that if the foreign trip was related to the conducted activity, then the entrepreneur has the right to include the purchase of fuel at a foreign gas station as tax costs (provided that the expenditure has been properly documented).

Fuel purchase is not WNT

According to the VAT Act, fuel for a vehicle is a commodity. However, in the case of purchase of gasoline, diesel or gas, refueled directly into the car and for the purpose of moving the vehicle, such a transaction will not be treated and accounted for as standard intra-Community acquisition of goods.

Fuel purchased at a foreign gas station should be included in tax deductible costs in the gross amount. This rule applies to both passenger cars and trucks. In this case, the basis for booking may be an invoice or a receipt (which is confirmed by the individual interpretation of the Director of the Tax Chamber in Katowice of August 19, 2011 - reference number IBPBI / 1 / 415-547 / 11 / WRz). The specified amount of the input tax on goods and services will appear on the documents. However, due to the fact that the levy was paid abroad, the entrepreneur cannot deduct it in Poland.

Therefore, the purchase of fuel abroad should not be treated as a typical intra-Community acquisition of goods, and even less as an import of services. So how to book such an event in the tax ledger of revenues and expenses?

Fuel purchased abroad - how to book it in the wfirma.pl system?

To book fuel bought abroad in the wfirma.pl system, go to the tab: EXPENDITURE »EXPENDITURE» ADD »INVOICE (EXCLUDING VAT) and select PURCHASE OF FUEL FOR THE VEHICLE as the type of expenditure. Then, in the TOTAL field, you should enter the amount from the receipt / invoice in a foreign currency. In addition, in the VEHICLE field, select the appropriate registration number of the car to which the expense relates.

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In the system, it is possible to automatically convert the currency according to the appropriate exchange rate. In the window for adding an expense, in the ADVANCED tab, it is enough to change the currency to the one in which the receipt (or other purchase document) is issued.

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