Warsaw (Puls Biznesu) – On Monday, new rules of the amended VAT law come into force. They reduce the possibility of VAT deduction when buying a new car for the company or buying fuel. Before, Ford Mondeo, Citroen Berlingo or BMW classified as models which could be bought by company with VAT reduction. Now, it will be possible only if bars are fixed just behind the first row of seats and special licence is received by the driver.
Experts say that there are ways to get VAT deduction. Vans and pickups will become more popular. Nissan offers Double Cab for PLN 106,000 (EUR 26,400). With full VAT deduction one may save PLN 20,000 plus costs of fuel. Mitsubishi offers L200 for PLN 125,000. Many producers, however, are not going to introduce new models because of new regulations. “It’s a waste of time and money to invest in the process of getting special permissions when after parliamentary elections the new government may change the rules again”, Lukasz Zadworny, Skoda Auto Poland marketing director commented.
Some of MPs of today’s opposition said before that changes are on the agenda. The automotive branch has very radical proposals. “Each car registered for the company should give the right of full VAT deduction. Then, the use of this car for private driving could be taxed”, Roman Kantorski, the CEO of the Polish Automotive Chamber proposed. Automotive companies are not afraid of new rules. “They will limit sales a little bit but there will be no disaster”, Jakub Farys, the director of SOIS Automotive Association said.
This opinion is strange as every third passenger car is today registered for the company. “In small enterprises, the rules may make people withdraw from buying a new car”, Tomasz Kassel from PricewaterhouseCoopers estimated. Poland is not the only EU country where VAT deduction when buying a car or fuel is limited. “Until a common EU system is adopted, member countries may have their own limitations. However, if new limitations are introduced, EU VAT committee must be consulted. There already have been protests against the new Polish rules”, Anna Stachura from Deloitte said.
(PLN 1 = EUR 0.249)