Expenses for parking and the highway only within mileage

An entrepreneur using his private car in his business has the right to count as tax deductible expenses related to it expenses incurred during a business trip. The condition in such a situation is keeping a record of the vehicle mileage and compliance with the statutory limit (so-called mileage).

The expenses related to the use of a private car as part of the business that the entrepreneur has the right to count as tax deductible costs include, first of all: fuel purchases, car insurance premiums, repairs and spare parts, inspections, maintenance services, and tolls for tolls on the motorway and use of paid parking.

Accounting for the last two - i.e. tolls for the highway and parking lot - may raise doubts, because including them among the costs related to the operation of the car (and only such costs can be accounted for within mileage allowances) may seem inappropriate. Therefore, some taxpayers may decide to settle this type of expenses on general terms and not within the applicable limits.

Such a position was presented by the company that applied for an individual interpretation to the Supreme Administrative Court. In the judgment of June 7, 2013 (reference number II FSK 1945/11 and II FSK 1946/11), the court ruled that the company's position was incorrect. In the opinion of the tax authority, the costs subject to the mileage limit include all expenses necessary to use the car for the taxpayer's needs, including tolls for using the motorway and the use of paid parking lots, provided that they are properly documented.

The company did not agree with the opinion issued by the Supreme Administrative Court, therefore it lodged a complaint with the Provincial Administrative Court, which dismissed it, considering the opinion of the tax authority as appropriate.

The cassation appeal to the Supreme Administrative Court was also dismissed. According to the court, it is impossible to separate tolls for parking lots and tolls from the use category, as it is a broader concept. This category includes all costs related to the use of the car and enabling its operation.

This situation shows that the tax authorities and courts are unanimous when it comes to settling the expenses for using the motorway and using the car park within the current mileage limit. Therefore, entrepreneurs using a private car as part of their business should have no doubts that when settling the above-mentioned fees, up to the statutory limit, do the right thing.