28/5/2026
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A company car is an important decision that significantly impacts your tax burden. Operating lease, finance lease, cash purchase, or a private car used for business activities – read our practical guide and make the best decision.
28/5/2026
Leasing is a civil law agreement between the lessor (financing company) and the lessee (individual or company using the leased asset), whereby the lessor acquires a specific asset (e.g., a car) and grants its use to the lessee for a specified period in exchange for monthly payments called lease installments. This financing method allows for the use of an expensive asset (e.g., a car) without the need for a one-time purchase and a large capital outlay.
Most commonly, two basic types of leasing are distinguished.
Primarily, by the fees you can include as tax-deductible expenses.
Lease payments and operating expenses (fuel, car wash, spare parts, service) can be included as business expenses at:
You can deduct VAT from the invoice for the initial fee, lease installments, and the buyout invoice. Depending on the vehicle's intended use, you can deduct VAT from operating expenses and lease payments at 50% of the VAT from the invoice for mixed use, or 100% for business use.
When purchasing a car for business purposes, you must register it as a fixed asset and depreciate it over several years. You can include depreciation allowances in your tax-deductible expenses, subject to a vehicle value limit of PLN 150,000 or PLN 225,000. The basic depreciation rate is 20%, and the depreciation period is 60 months, or 5 years.
If you buy a used car that has been in use for at least 6 months before your purchase, you can benefit from a higher depreciation rate and a shorter depreciation period – 40% and 30 months. This will increase your monthly tax-deductible expenses, but over a shorter period.
Expenses related to using cars in business, such as depreciation allowances and leasing fees, can be included in tax-deductible expenses up to a certain limit specified in the PIT Act.
Currently, the following limits apply:
⚠️Leasing fees and depreciation allowances are fully deductible as expenses if the car's value does not exceed the above limits. If the car is worth more, a proportion is applied to calculate the tax-deductible expense.
The proportion does not apply to depreciation. Therefore, depreciation allowances are deductible only up to the car's value limit.
💡Is your buyout amount high, up to PLN 150,000? The car is treated as your property and depreciated up to this amount – which increases the total tax-deductible expenses for your business.
📊 For high-value cars, an operating lease is a more cost-effective option.
From January 1, 2026, new limits will come into effect, particularly impacting entrepreneurs who plan to finance a combustion engine vehicle. The new limits are:
Selling a company car also entails tax obligations for PIT and VAT, so it's important to analyze which vehicle financing option will be more beneficial in the event of a planned sale.
Do you own a private car and wonder if you can use it for your business? There are several ways to account for the running costs of a private car used for business purposes.
You can introduce your private car into your business by adding it to your fixed assets register. This method allows you to deduct 75% of the car's operating expenses – such as fuel purchases, parts replacement, servicing, etc. – and reclaim 50% of the VAT on these expenses.
To account for a vehicle, you need:
You can choose to use this vehicle exclusively for business purposes to benefit from 100% deductions – what are the requirements?
Once registered, the vehicle becomes a business asset, so the sale must be invoiced. The revenue from the sale is considered business income and must be taxed according to the business's chosen tax regime, and VAT must be paid on the sales invoice – provided you are an active VAT payer and deducted VAT when acquiring the vehicle.
When selling a company vehicle, a VAT input adjustment period also applies. If the vehicle's value exceeds PLN 15,000, the adjustment period is 5 years. This means that if you sell the vehicle within 5 years of purchase and deducted VAT from its purchase invoice, you must adjust the input VAT.
You should transfer the vehicle to your private assets and wait 6 years from the date of transfer before selling it. In that case, the revenue from the sale will not be subject to income tax or VAT.
You can use a private vehicle for business purposes without registering it as a fixed asset. Accounting for operating expenses is also possible, but with different proportions – you can deduct 20% of these expenses and 50% of the VAT. Selling the vehicle does not incur income tax for the business.