A moped in the company? Why not!

When fuel prices continue to rise, it is worth finding a way to reduce transport and communication costs. One of them is the purchase of a moped or scooter. Check if the moped can be included in the company's property!

The choice of this means of transport is primarily lower operating costs (than in the case of a car), faster road to work (we do not stand in traffic jams) and the possibility of parking almost anywhere (smaller dimensions).

According to the Road Traffic Act, a moped is a two- or three-wheeled vehicle equipped with an internal combustion engine with a cylinder capacity not exceeding 50 cm3 or an electric motor with a power not exceeding 4 kW, the design of which limits the speed to 45 km / h.

Attention! Scooters that meet the above definition should also be treated on a par with a moped. In the event that the scooter engine capacity and possible speed are higher, it should be treated like a motorcycle, with all the consequences.

Deduction of VAT when buying a moped

The moped is not a motor vehicle. Therefore, the owner of the company may deduct the full tax upon its acquisition.

Moped - expenses related to the use

The entrepreneur also has the right to deduct tax on goods and services on both fuel and other expenses related to the operation of the moped, such as the purchase of parts, insurance policy or even repairs. These types of expenses may also constitute tax deductible expenses.

The only problem may be the purchase of a helmet and protective clothing, because many tax interpretations indicate that this type of expenses cannot be included in company costs. Tax authorities believe that they do not have a direct impact on the company's income, and therefore should not reduce taxable income shown in business activities.

Depreciation

When the expected period of use of the moped in the business activity is longer than one year, it should be considered a fixed asset of the company and entered into the records. With a value below PLN 3,500, the best solution is to use a one-time amortization method. This write-off should be included in the Tax Book of Income and Expenditure in the month in which the fixed asset was accepted for use.

When the value of the moped or scooter is greater than PLN 3,500, one of the following methods can be used:

• linear - which results from the list of depreciation rates; for KŚT 740 a 20% rate should be applied,
• individual - art. 22j paragraph. 1 point 2 of the Personal Income Tax Act indicates that individual depreciation rates can be determined for used or improved fixed assets entered in the records of a given taxpayer for the first time, while depreciation of means of transport should be at least 30 months, which means that the maximum rate depreciation that can be used in this case is 40%. The moped will then be depreciated over a period of 2.5 years.

Attention! Fixed assets are considered used when the taxpayer proves that they were used for at least 6 months prior to their acquisition.

• increased - this is the depreciation rate for means of transport used more intensively in relation to average conditions or for vehicles requiring special technical efficiency. The basic rate from the list may be increased by a factor of a maximum value of 1.4. It would then be 28% (20% x 1.4). This possibility results from Art. 22i paragraph. 2 point 2 of the PIT Act.

When entering the moped in the Fixed Assets Register, remember to draw up the OT document - acceptance of the fixed asset for use.