Do you have a car in the company? Inform the tax office about it!
From April 1, 2014, entrepreneurs were obliged to submit information about their car in the company to the relevant tax office. This applies to motor vehicles with a total weight not exceeding 3.5 tonnes, used exclusively for business purposes.
A car in the company that is a fixed asset - mileage required
Amendments to the VAT Act, which entered into force in April this year, obligated taxpayers to keep records of vehicle mileage for VAT purposes, not for private cars used for business purposes, but for those that are used only for business purposes. This means that the mileage allowance should also be kept for the car in the company, which is a fixed asset and is used only for the purposes of the business.
The aforementioned vehicle mileage record should contain:
1) the registration number of the motor vehicle,
2) the day of starting and ending keeping the records,
3) the mileage meter reading of the motor vehicle on the day of the start of keeping the records, at the end of each accounting period and on the day of ending the keeping of the records,
4) entry of the person driving the motor vehicle for each use of this vehicle, including:
a) consecutive number of the entry,
b) date and purpose of departure,
c) description of the route (from where - where to),
d) the number of kilometers traveled,
e) name and signature of the person driving the vehicle
- confirmed by the taxpayer as to the authenticity of the entry of the person driving the vehicle, if he is not a taxpayer,
5) the number of kilometers traveled at the end of each billing period, and
as at the end of keeping the records.
Keeping additional records for a car in the company is to indicate who exceeds the assumptions of the amended act and deducts 100% VAT from operating expenses and fuel for theoretically "company" cars, which in practice are also used for private purposes.
You can report the car in the company for VAT-26
Currently, taxpayers who use motor vehicles only for business purposes, for which they are required to keep a vehicle mileage register, have an additional task - to submit information about these cars to the tax office. The regulations provide for a 7-day deadline for submitting such information. It is counted from the date on which the taxpayer incurs the first expenditure related to this vehicle.
If the entrepreneur fails to submit the information or exceeds the deadline for submitting information about vehicles, the motor vehicle is considered to be used only for the taxpayer's business only from the date of its submission. What does it mean? Well, the mileage alone is not enough to have the right to deduct 100% VAT on operating expenses, including fuel from a passenger car used exclusively for business purposes.
For the purpose of submitting information to the office about the cars owned, the minister responsible for public finances defined its model by way of an ordinance. Official form - VAT-26 form - aims at
Do you run a company and have questions?
Take advantage of the expert advice of the Entrepreneur's Guide
Online advice for businessesstandardization of the data provided during the notification allowing for the identification of the motor vehicle. The information includes information such as: the make, model of the vehicle and its registration number, as well as the date of the first expenditure related to it.
Therefore, the amendments to the act brought some facilitation, but only for taxpayers using cars for both corporate and private purposes. In a situation where the vehicle is used for both business and private purposes, they allow for partial (50%) deduction of VAT on the purchase of such vehicles and operating expenses, but without the right to deduct VAT on the fuel purchased for them, without the need to keep additional records . However, on the other hand, they impose additional obligations on those taxpayers who use the car in the company only for business purposes. Among them, there are keeping records of vehicle mileage and submitting to the office information on owned cars weighing not more than 3.5 tons.