Service-Tax

Income tax - a new definition of a passenger car from April 1, 2014

In 2014, we are witnessing significant changes in the tax field. The most extensive changes were made to the Value Added Tax Act - the modifications concerned, inter alia, the moment when the tax obligation arose, input tax deduction and invoicing. Smaller - but equally important - changes appeared in the CIT and PIT acts. The most important (for entrepreneurs who use various vehicles in the company) is the new definition of a passenger car. The first was in force from January 1 this year, later it was replaced by the current one, which entered into force on the first day of April and is the result of an amendment to the regulation on VAT deduction from motor vehicles.

Passenger car for PIT and CIT - definition until December 2013

Until the end of 2013, the definition of a passenger car as defined in Art. 7 of the Act of April 15, 2011 amending the Accounting Act and certain other acts.

Until the last days of last year, in terms of PIT and CIT, the definition of a passenger car was binding, which could be found in Art. 7 of the Act amending the Accounting Act and certain other acts. According to her, it was a motor vehicle with a maximum permissible weight not exceeding 3.5 tons, designed for the transport of no more than 9 people, including the driver, with the exception of:

a motor vehicle with one row of seats, separated from the part intended for the carriage of loads by a wall or a permanent partition, classified under the road traffic regulations into the following sub-types: multi-purpose, van;
a motor vehicle with more than one row of seats which are separated from the part intended for the carriage of goods by a wall or a permanent partition and whose length of the part intended for the carriage of goods, measured on the floor from the farthest point of the floor, allowing for the erection of a vertical wall or a permanent partition between the floor and the ceiling to the rear edge of the floor, exceeds 50% of the vehicle length; for the calculation of the proportion referred to in the preceding sentence, the vehicle length is the distance between the lower edge of the vehicle's windscreen and the rear edge of the floor of the cargo section of the vehicle, measured horizontally along the length of the vehicle between the lower edge of the vehicle's windscreen and a point derived vertically from the rear edge of the floor of the load carrying part of the vehicle;
a motor vehicle that has an open part intended for the carriage of loads;
a motor vehicle that has a driver's cabin and a body intended for the carriage of loads as structurally separate elements of the vehicle;
a motor vehicle which is a special vehicle within the meaning of the road traffic law with the intended use listed in the appendix to this Act.

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

Meeting the requirements of Art. 7 sec. 1 items 1-4 of the Act had to be confirmed by additional technical tests carried out by the district vehicle inspection station and an appropriate note in the registration certificate.

Passenger car for PIT and CIT - definition by the end of March 2014

January this year brought a new definition of a passenger car, which was included directly in the PIT and CIT Acts. Importantly, for the first quarter of 2014 (January-March), the definition for income tax was identical to that for VAT purposes.

According to Art. 5a point 19a of the PIT Act and art. 9a point 9a of the CIT Act, a passenger car was a vehicle with a maximum permissible weight not exceeding 3.5 tons, designed for the transport of no more than 9 people, including the driver, with the exception of:

a) a motor vehicle with one row of seats, separated from the part intended for the carriage of loads by a wall or a permanent partition, classified under the provisions of the road traffic law into the following sub-type: multi-purpose, van,

b) a motor vehicle with more than one row of seats which are separated from the part intended for the carriage of goods by a wall or a permanent partition, and whose length of the part intended for the carriage of goods, measured on the floor from the farthest point of the floor, permitting the erection of a vertical wall or a permanent partition between the floor and with the ceiling to the rear edge of the floor, exceeds 50% of the length of the vehicle; for the calculation of the proportion referred to in the preceding sentence, the length of the vehicle is the distance between the lower edge of the vehicle's windscreen and the rear edge of the floor of the cargo section of the vehicle, measured horizontally along the length of the vehicle between the lower edge of the vehicle's windscreen and a point derived vertically from the rear edge of the floor of the part of the vehicle intended for the carriage of goods,

c) a motor vehicle with an open part intended for the carriage of goods,

d) a motor vehicle that has a driver's cabin and a body intended for the carriage of loads as structurally separate elements of the vehicle,

e) a motor vehicle which is a special vehicle - if the documents issued in accordance with the provisions of the road traffic law, or other documents specified in the regulations issued on the basis of art. 86a paragraph 10 of the Value Added Tax Act, it follows that it is a special vehicle,

f) a motor vehicle other than that mentioned in point (a) a-e, in which the number of seats (seats), including the driver's seat, is:

We recommend

Settle your PIT tax return online

1 - if the maximum load capacity is equal to or greater than 425 kg,
2 - if the maximum load capacity is equal to or greater than 493 kg,
3 or more - if the maximum load capacity is equal to or greater than 500 kg.

As in the regulations in force before the New Year, it was necessary to obtain the appropriate documents confirming that a given vehicle is not a passenger car according to the letter of the law.

Art.5d of the PIT Act, Art.4c of the CIT Act (as of March 31, 2014)

In the case of motor vehicles with a maximum permissible weight not exceeding 3.5 tons, meeting the requirements set out in Art. 5a point 19a lit. a-d u.p.o.d.f. (Article 4a, point 9, letter ad upodp), allowing for the failure to classify a given motor vehicle as passenger cars, is determined on the basis of an additional technical inspection carried out by a district vehicle inspection station, confirmed by a certificate issued by this station, and the vehicle registration certificate containing the relevant an annotation about the fulfillment of these requirements.

The permissible load capacity of vehicles and the number of places (seats) referred to in art. 5a point 19a lit. f u.p.o.d.f. (Article 4a, point 9a, letter f), is determined on the basis of documents issued in accordance with the provisions of the road traffic law. Vehicles which in the documents referred to in the first sentence do not have the permissible load capacity or number of seats specified, are also considered passenger cars.

The beginning of 2014 also saw the expansion of the list of vehicles that are not considered passenger cars.

Passenger car for PIT and CIT - definition from April 1, 2014.

From the first day of April, a new definition of a passenger car applies, which is not the same as the one used for value added tax purposes.

According to the amended art. 5a point 19a of the PIT Act and art. 9a point 9a of the CIT Act, a passenger car is a motor vehicle within the meaning of the road traffic regulations with a maximum permissible weight not exceeding 3.5 tons, designed for the transport of no more than 9 people, including the driver, with the exception of:

a) a motor vehicle with one row of seats, which is separated from the part intended for the carriage of goods by a wall or a permanent partition:

classified on the basis of road traffic regulations into the following subtype: multi-purpose, van or
with an open part intended for the transport of loads,

b) a motor vehicle with a driver's cabin with one row of seats and a body intended for the carriage of loads as structurally separate elements of the vehicle,

c) a special vehicle, if the documents issued in accordance with the road traffic regulations show that the vehicle is a special vehicle and if the conditions contained in separate regulations, specified for the following purposes, are also met:

electric / welding aggregate,
for drilling work,
excavator, backhoe-bulldozer,
charger,
a hoist for maintenance and assembly works,
truck crane,

d) a motor vehicle specified in the regulations issued on the basis of art. 86a paragraph 16 of the Value Added Tax Act.

Attention!

Fulfillment of the requirements for motor vehicles specified in:

lit. a and b-it is concluded on the basis of an additional technical examination carried out by the regional vehicle inspection station, confirmed by a certificate issued by this station and the vehicle registration certificate containing the appropriate annotation about the fulfillment of these requirements;
lit. c - it is determined on the basis of documents issued in accordance with the road traffic regulations.

Why is the definition of a passenger car so important? Because it allows for the distinction of heavy-duty vehicles among vehicles below 3.5 tons, and this is important, for example, when designating private cars used in business, for which it is not necessary to keep additional records of vehicle mileage.