Passenger car - definition after the changes

As of April 1, 2014, changes were made to the definition of a passenger car for income tax purposes. Taxpayers using vehicles for business purposes should pay special attention to this.

Passenger car definition valid until March 31, 2014

In January 2014, the definition of a passenger car appeared for the first time in the PIT Act. Until now, it has been regulated in the Act of April 15, 2011 amending the Accounting Act and certain other acts.

Pursuant to Art. 5a point 19a of the Act on personal income tax through a passenger car for PIT purposes in the first quarter of 2014 should be understood as a motor vehicle with a maximum permissible weight not exceeding 3.5 tons, structurally designed to transport no more than 9 people, including the driver, exception:

• "A motor vehicle with one row of seats, separated from the part intended for the carriage of goods by a wall or a permanent partition, classified under the provisions of the road traffic law into the following sub-type: 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 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,

• 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 transport of loads as structurally separate elements of the vehicle,

• 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,

• 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:

• 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. "

The definition of a passenger car effective from April 1, 2014

Due to numerous amendments to the VAT Act in the field of motor vehicles, from April 1, 2014, the provisions on the definition of a passenger car under the PIT Act were also modified.

And so, under Art. 2 of the Amendment Act (Act of February 7, 2014 amending the Act on tax on goods and services and certain other acts) from April 1, 2014, a passenger car on the basis of PIT is a motor vehicle within the meaning of road traffic regulations with a permissible total weight not exceeding 3.5 tonnes, designed for the transport of not 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 works,

- excavator, backhoe-bulldozer,

- charger,

- lift 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. "

Fulfillment of the requirements for motor vehicles specified in point (a) a and b shall be found on the basis of the vehicle inspection station technical inspection, confirmed by a certificate issued by the station and the vehicle registration certificate containing the appropriate annotation about the fulfillment of these requirements. In the case of lit. c you must obtain documents issued in accordance with road traffic regulations.

To sum up: at the beginning of 2014, the legislator extended the catalog of non-passenger vehicles and changed the definition of a passenger car. On the other hand, the new regulations apply to cars purchased or manufactured from the date of entry into force of the amending act and used on the basis of contracts: rental, leasing, etc. (concluded from the date of entry into force of the amendment).