On 25 March 2014 He's gone. first Judgment of the Supreme Administrative Court reference no. I FSK 257/13 determining the possibility for taxable persons to deduct the full amount of VAT on bank cars. In this judgment, the NSA indicated that the deduction of the full amount of VAT on bank cars depends on the purpose for which this vehicle, belonging to the special category of cars, will be used in its business.
Banknote as a special vehicle is not subject to this restriction, but it should be noted that everything depends on which activities will be used in the operation.
It was clear from the facts presented by the applicant that it had planned to purchase or lease a car and therefore wanted to deduct VAT in full from the invoice of its acquisition or from paid leasing instalments. However, the problem is that the taxpayer runs a construction company, and the car would only be used to carry cash to pay wages to employees or to pay to contractors.
The Supreme Administrative Court in the judgment supported the decision of the Director of the Tax Chamber in Łódź, who issued an individual interpretation of the provisions of tax law, in which it argued against the possibility of deducting VAT in full, indicating that the tax payer would be subject to statutory VAT deduction limits.
This is about limits the same as for all entrepreneurs who use passenger cars or other vehicles for their business 3.5 tone. According to this regulation, the entrepreneur can therefore deduct the maximum 60% the amount of VAT charged resulting from the purchase or leasing invoice. However, that amount may not exceed the amount 6,000 PLN.
Banknote as a special vehicle is not subject to this restriction, but it should be noted that everything depends on which activities will be used in the operation. If an entrepreneur is actually using a bankcar to transport cash and this is the subject of business, the problem does not arise. In that case, the taxable person has the right to deduct VAT from the purchase invoice or leasing charges in full.
The situation is different when an entrepreneur buys or leases a banker with a view to deducting VAT in full, but his business is not related to, for example, the transportation of money according to the purpose of this type of car. At that time, the taxable person cannot rely on the possibility of a full deduction of the input tax for the purchase of this type of vehicle and must comply with the statutory limits mentioned above, as the Supreme Administrative Court clearly stressed in the judgment in question.
In conclusion, it should be borne in mind that the exemption from the restrictions on special vehicles does not necessarily mean that any entity registered as an active VAT taxable person will be entitled to deduct the full input tax charged for the purchase of or the charges incurred under the lease agreement. If this vehicle is not and will not be used in accordance with its intended purpose for operations subject to VAT by the taxable person, it may not benefit from the full deduction.
The judgment in question should be regarded as detrimental to entrepreneurs who hoped that the Supreme Administrative Court would grant them the right to state that the position of the authorities was incorrect.