Service-Tax

Hearse and armored car - how to properly account for VAT?

Accounting for VAT on expenses related to motor vehicles other than heavy goods vehicles with a maximum permissible weight of more than 3.5 tonnes may be quite difficult for taxpayers. Along with the April amendment, new formalities and additional divisions as well as formal requirements in the form of vehicle mileage records for VAT purposes were introduced, which additionally made settlements difficult for taxpayers. An entrepreneur who wants to correctly settle VAT should read the act and additional regulations in this matter. In the case of the latter, particular attention should be paid to entrepreneurs who use special vehicles in their activities, such as bank cars and caravans.

Hearse and armored vehicle - special vehicles

Taxpayers with the so-called special vehicles are entitled to a full deduction of VAT on the purchase of the vehicle and on the related expenses. Importantly, these vehicles do not require taxpayers to keep additional mileage records. As stated in Art. 86a paragraph 4 pts 2, due to the construction of these vehicles, it is not possible to use them for private purposes, or it makes such use irrelevant for tax settlements.

Art. 86a sec. 9 points 3 of the Act contains a list of cars considered to be special vehicles. These include, among others: an electric or welding unit, a vehicle intended for drilling work, an excavator and a backhoe-bulldozer, a loader, a lift for maintenance and assembly works, and a truck crane. Theoretically, the catalog of these vehicles is closed, however, as indicated in paragraph 16 of the indicated article, the above list may also include other vehicles listed in the regulations issued by the Minister of Finance - among them we can find, among others, bank cars and caravans.

Both the armored car and the caravan were included in the Ordinance of the Minister of Finance of March 27, 2014 on motor vehicles considered to be used only for the taxpayer's business activity. According to his par. 2:

§ 2. For motor vehicles other than those specified in Art. 86a paragraph 9 of the Act considered to be used only for the taxpayer's business activity, motor vehicles are special purpose vehicles:

funeral,
armored vehicle - only type A and B

- if they have one row of seats or their permissible total weight is greater than 3 tonnes.

Online Tips

Do you run a company and have questions?

Take advantage of the expert advice of the Entrepreneur's Guide

Online advice for businesses

Special vehicles: armored car and hearse - technical requirements

Including armored vehicles and funeral vehicles as special vehicles is good news for the taxpayer that he can fully deduct input tax from these vehicles, without additional formal burdens. However, it should be remembered that the mere name of a caravan or an armored vehicle may not be a sufficient argument in the face of the tax office. So what conditions must be met?

These vehicles should have a permissible total weight of more than 3 tons or one row of seats. Further requirements are specified in par. 3 - in accordance with it, the detailed technical data of vehicles have been defined in two separate acts, including in the Regulation of the Minister of Health of 27 December 2007 on the issue of permits and certificates for the transport of human corpses and remains, it defines the provisions on the technical aspects of the hearse. Detailed sanitary and technical requirements are specified in par. 4 point 1 of the Regulation:

§ 4 point 1. The means of road transport intended for the transport of human remains and remains should meet the following technical and sanitary requirements:

be permanently marked in a manner indicating its purpose,
have a driver's cabin insulated from the part intended for housing corpses or human remains,
have protection against shifting of the coffin or container for corpses or human remains during transport,
have a floor in the part intended for housing a coffin or a container for corpses or human remains, made of easily washable materials and resistant to disinfectants,
have a separate place for the storage of disinfectants, washing and cleaning equipment and disposable protective gloves.

Pursuant to the provisions of the road traffic law, a compliant funeral vehicle should be registered as a special vehicle.

On the other hand, the regulations in the case of armored vehicles were included in Annexes 3 and 4 to the Ordinance of the Minister of the Interior and Administration of September 7, 2010 on the requirements for the protection of monetary values stored and transported by entrepreneurs and other organizational units. Type A bank cars are described in detail in Annex 3:

1. Type A bank car must meet at least the following general technical requirements:

structure with a separate cargo compartment;
passenger compartment with five seats and fuel tank cover, made in class FB 5 in accordance with PN-EN 1522 (fuel tank, side walls) and at least FB4 in accordance with PN-EN 1522 (floor, roof);
glazing of the passenger compartment in class BR 5 in accordance with PN-EN 1063, without the possibility of opening;
equipped with an air conditioning and ventilation system for the interior;
load compartment reinforced with steel sheet, at least grade "45", 1 mm thick according to PN-EN 10083-1, with only one external door (in particular in the form of a rear double-leaf door with a locking device for locking one leaf over the other and the possibility of fixing it to the compartment walls in the open position) with hinges with pins secured against knocking out and equipped with an additional lock, at least class A, in accordance with the PN-EN 1300 standard;
covering and lining the surfaces of walls, floor and ceiling as well as devices and fittings inside the cargo compartment with the B = 0 flammability degree according to PN-ISO 3795 (or an equivalent document);
equipping the cargo compartment with lighting;
external door with a central locking system and signaling that it is closed and unlocked. Door unlocking and locking from outside the vehicle by radio remote control or equivalent device, opening only one door and closing all vehicle doors simultaneously. The ability to lock and unlock individual doors from the vehicle dashboard. At least 3 doors in the passenger compartment or equipment of the driver's cabin and the compartment intended for the transport of people with exits in the form of doors, windows or manholes, enabling exit to the outside, if necessary (in the number specified in the provisions on the technical conditions of vehicles and the scope of their necessary equipment) ;
equipment with an immobilizer meeting the requirements of Council Directive 74/61 / EEC of 17 December 1973 on the approximation of the laws of the Member States with regard to devices to prevent unauthorized use of motor vehicles (Official Journal of the EU, Polish special edition, chapter 13, t 2, p. 49), hereinafter referred to as "Directive 74/61 / EEC", or Regulation No. 116 of the United Nations Economic Commission for Europe - Uniform technical requirements for the protection of motor vehicles against unauthorized use, hereinafter referred to as "UNECE Regulation No. 116" ;
equipping with an externally monitored satellite location system and a robbery signaling system.

2. The engine compartment should have an automatic fire extinguishing system and a fuel tank made in a way that is safe against explosion.

3. A type A bank vehicle should be equipped with a modular vehicle alarm system meeting the requirements of Directive 74/61 / EEC or UNECE Regulation No. 116, with at least the following characteristics:

"panic" function turned on and off with one button of the radio remote control and an additional switch inside the passenger compartment;
backup power supply;
additional alarm siren;
interior protection sensors;
engine operation block;
service mode;
an alarm signal with all the direction indicator lamps.

4. A type A bank car should be equipped with an alarm transmission system providing at least information about:

vehicle position and speed;
opening and closing the doors of the cargo and passenger compartments;
the alarm condition of the car alarm system;
the vehicle engine is switched on and off.

5. Electronic and electrical equipment installed in the vehicle should meet the requirements of Council Directive 72/245 / EEC of 20 June 1972 on the approximation of the laws of the Member States relating to the suppression of radio interference caused by positive ignition engines used in the field of electromagnetic compatibility. in motor vehicles (Official Journal of the European Union, Polish special edition, chapter 13, vol. 1, p. 226) or Regulation No. 10 of the United Nations Economic Commission for Europe - Uniform provisions concerning the approval of vehicles with regard to electromagnetic compatibility.

6. Additional electrical installation of the vehicle (after construction) should meet the requirements of the PN-S 76021 standard (types and scope of tests as per point 4.1.b, table 2, column 4 of this standard).

7. The wheels of the vehicle should be made with massive inserts or in some other structure allowing, after a puncture, a further drive for 15 km at a speed of 50 (+/- 5) km / h.

8. The use of gas installations in type A armored vehicles is not allowed.

On the other hand, detailed information on the type B armored vehicle is included in Annex 4:

1. Type B bank car must be equipped with:

glazing made in at least class BR2, according to the PN-EN 1063 standard (or in an equivalent class), without the possibility of opening them;
passenger compartment made in at least class FB 2 according to PN-EN 1522 (or an equivalent class);
external door with a central locking system and signaling that it is closed and unlocked. To unlock and lock the vehicle door from the outside, use the radio remote control or a device equivalent to% 5go. The remote control or equivalent device shall only open one door and close all doors on the vehicle simultaneously. The central locking system should enable the locking and unlocking of individual doors from the vehicle's instrument panel. The vehicle should have at least 3 doors in the passenger compartment or a driver's cabin and a compartment intended for the transport of passengers, equipped with exits in the form of doors, windows or hatches allowing, if necessary, access to the outside, in the number specified in the provisions on the technical conditions of vehicles and their scope. the necessary equipment;
interior air conditioning and ventilation system;
immobilizer meeting the requirements of Council Directive 74/61 / EEC of 17 December 1973 on the approximation of the laws of the Member States with regard to devices to prevent unauthorized use of motor vehicles (Journal of Laws of the EU, Polish special edition, chapter 13, vol. 2 , p. 49), hereinafter referred to as "Directive 74/61 / EEC", or Regulation No. 116 of the United Nations Economic Commission for Europe - Uniform technical requirements for the protection of motor vehicles against unauthorized use, hereinafter referred to as "UNECE Regulation No. 116";
a separate compartment for the transport of cash with lighting and:
- a device for storing monetary values of at least class I according to PN-EN 1143-1 or PN-EN 1143-2, permanently attached to the vehicle, additionally equipped with a time lock or
- with a specialized container mounted in a special stand, permanently attached to the vehicle, or
- a separate cargo compartment, made of permanently joined steel sheet with a minimum thickness of 1 mm, with a separate door with a lock made at least in class A according to PN-EN 1300, with a three-point locking of the door;
modular car alarm system, meeting the requirements of Directive 74/61 / EEC or Regulation No 116 / ECE and Regulation No 97 of the United Nations Economic Commission for Europe - Uniform provisions for the approval of alarm systems for vehicles and vehicles with regard to their alarm systems (Journal of Laws of the EU L of 2008, No. 351, item 1, p. 1), having at least the following properties:
- "panic" function turned on and off with one button of the radio remote control and an additional switch inside the passenger compartment,
- backup power supply,
- additional alarm siren,
- passenger compartment protection sensors,
- engine operation blockade,
- service mode,
- an alarm signal with all the direction indicator lamps;
externally monitored satellite location system and robbery signaling system;
an alarm transmission system transmitting information on at least:
- vehicle location,
- vehicle speed,
- opening and closing the doors of the cargo and passenger compartment,
- car alarm system alarm condition,
- starting and stopping the engine.

2. Electronic and electrical equipment installed in the vehicle should meet, with regard to electromagnetic compatibility, the requirements of Council Directive 72/245 / EEC of 20 June 1972 on the approximation of the laws of the Member States relating to the suppression of radio interference caused by ignition engines. spark plugs used in motor vehicles (Official Journal of the EU, Polish special edition, chapter 13, vol. 1, p. 226) or Regulation No. 10 of the Economic Commission for Europe of the United Nations - Uniform provisions concerning the approval of vehicles in the field of electromagnetic compatibility.

3. Additional electrical installation of the vehicle (after construction) should meet the requirements of the PN-S 76021 standard (types and scope of tests as per point 4.1.b, table 2, column 4 of this standard).

4. The wheels of the vehicle should be made with massive inserts or in some other structure allowing, after a puncture, a further drive for 15 km at a speed of 50 (+/- 5) km / h.

5. The use of gas installations in the type B armored vehicle is not allowed.

Importantly, the taxpayer is obliged to document the fulfillment of the above conditions - in accordance with the provisions of the road traffic law. Please note that vehicles that meet the requirements of the Type C armored vehicle cannot be classified as special vehicles - more information on this type of vehicle is provided in Annex 5 of the Regulation.