How to Account for a Company Car in Poland in 2026?

A company car in Poland looks simple until the first tax return. VAT is deductible at 50% by default, costs are capped by a limit that depends on CO2 emissions, and since 1 January 2026 that limit for most petrol, diesel and hybrid cars is PLN 100,000. If the car costs more, only part of each lease payment counts as a tax cost.

This applies to a JDG (sole proprietorship) and, with the same caps, to a Polish subsidiary (sp. z o.o.) paying CIT. The caps also hit leases signed before 2026. If you are choosing a car for a new Polish entity or replacing one at year-end, the decision between lease, purchase and rental is now mostly a maths problem.

Below: how the 50% and 100% VAT routes work, what the 2026 caps change, a worked example, and a side-by-side comparison. I build invoicing software and am not an accountant, so I cite the statutes and Ministry of Finance (MF) statements. Confirm your own case with a Polish accountant.

VAT on a company car in Poland: 50% or 100%

By default you deduct 50% of the VAT on a passenger car (purchase, lease payment, rental fee, fuel, servicing). No filing and no mileage log are needed. The rule sits in Article 86a of the VAT Act.

Full 100% VAT is available only if the car is used exclusively for business and you meet three conditions together:

1. you file form VAT-26 with the tax office within 7 days of the first expense related to the car,

2. you keep a VAT mileage log from that day (odometer readings, routes, purpose of each trip),

3. you adopt internal rules that rule out private use.

A late VAT-26 is not fatal but it costs money: full deduction applies only from the day you file. Earlier expenses, such as a deposit or an initial lease fee, stay at 50%.

Vehicles with specific annotations in the registration document (VAT-1A, VAT-1B, VAT-2, mostly some vans) are a separate case: 100% VAT without VAT-26 or a mileage log.

Tax-deductible costs: the 75% rule, the mileage log and the 2026 caps

For income tax (PIT Act; CIT works analogously for companies) two separate rules apply.

Running costs (fuel, servicing, tyres, the service element of a lease payment). With mixed business and private use, 75% of the cost is deductible, calculated on the net amount plus the 50% of VAT you could not deduct. You get 100% only with exclusive business use and a mileage log. Without a log, the car is presumed to be used privately as well.

The value cap applies to the initial lease fee and capital part of lease payments, rental fees and depreciation. From 1 January 2026:

If the car is worth more than the cap, only a proportional part reaches your costs. The value compared with the cap is net price plus the non-deductible half of VAT. With 50% VAT, the PLN 100,000 cap is therefore used up at about PLN 89,600 net (for an EV: about PLN 201,700 net).

Two points surprise people most. First, the MF confirmed in its answer to parliamentary interpellation no. 12100 that the lower cap also covers leases signed before 2026. Second, for depreciation the old caps remained only for cars entered into the fixed-asset register by the end of 2025. CO2 is taken from Poland's central vehicle register, so check the exact model version before signing.

Lease, buy or long-term rental: side by side

All three options face the same caps and the same VAT rules. They differ in upfront cash, residual-value risk and admin.

After the 2026 change, the car model matters more than the financing form. An EV is the only category where the cap covers a car above PLN 200,000 net.

Worked example: a PLN 200,000 net car on an operating lease

Assumptions: petrol car, CO2 of 50 g/km or more, mixed use (50% VAT), operating lease. Capital part of the monthly payment: PLN 3,000 net + PLN 690 VAT (23%).

That is about PLN 22,140 a year outside your costs, or roughly PLN 4,200 of extra tax at a 19% rate (flat PIT or standard CIT). For an electric car at the same price, the PLN 223,000 value fits under the PLN 225,000 cap and the whole PLN 3,345 would be deductible. Fuel and servicing are handled separately at 75%.

Buy-out and resale: what people forget

• Selling after a lease buy-out. Selling a car bought out of an operating lease within 6 years (counted from the first day of the month after the buy-out) is business income, even if you bought it out "privately". Basis: Article 14(2)(19) of the PIT Act.

• VAT on the sale. Selling a car on which VAT was deducted, fully or partly, is generally subject to VAT.

• Change of use. Moving from 100% to 50% VAT requires updating VAT-26 and adjusting the VAT you deducted.

Car invoices in KSeF

KSeF (Poland's national e-invoicing system) is where your lease, rental and fuel invoices arrive. Since 1 February 2026 every business must receive invoices through KSeF. Issuing invoices in KSeF became mandatory for most companies on 1 April 2026; the smallest sellers (up to PLN 10,000 in monthly sales) follow on 1 January 2027.

Penalties for KSeF errors are scheduled to start on 1 January 2027. On 16 September 2026 the MF announced it wants to push that to the end of 2027, but this is a planned amendment, not current law. Plan as if penalties start in January.

Checklist: before you sign a car contract

1. Check the CO2 value of the exact model version and assign the cap (PLN 100,000, 150,000 or 225,000).

2. Calculate the car value for the cap: net price plus the non-deductible part of VAT, then the cap ratio.

3. Choose 50% or 100% VAT. Pick 100% only if you can genuinely exclude private trips.

4. For 100%: file VAT-26 within 7 days of the first expense (a deposit counts), start the mileage log at once and write the usage rules.

5. Record running costs separately, because the 75% rule applies to them.

6. Before a buy-out or sale, work out the PIT effect (6 years) and VAT.

7. Confirm the assumptions with an accountant before signing.

Conclusion and next step

In 2026 the cap decides whether a company car pays off. Below it, the financing form is about cash and convenience; above it, part of every payment simply stops being a tax cost. Start from CO2 and net price, and only then compare monthly payments.

Biurko helps with the paperwork around the car: sales and purchase invoices in KSeF, a purchase register with cost categories, and an export your accountant can use. Try it yourself: 14 days free at biurko.io.

FAQ

Is leasing a company car in Poland worth it in 2026?

It depends on price and CO2. For a petrol car above about PLN 89,600 net (50% VAT), the PLN 100,000 cap cuts part of each payment from costs. An EV fits up to about PLN 201,700 net. Below the cap, a lease still deducts the whole capital part and needs only a small deposit.

How much VAT can I deduct on a company car in Poland?

As a rule 50% of VAT on purchase, payments and running costs of a passenger car, with no extra formalities. You get 100% if the car is used only for business: file VAT-26 within 7 days of the first expense, keep a VAT mileage log and exclude private trips. A late VAT-26 delays full deduction until the filing date.

Do I have to keep a mileage log for a company car?

Not always. With mixed use and 50% VAT no log is required, and running costs are deducted at 75%. A mileage log is needed if you want 100% VAT and 100% of running costs as tax costs. Without it, the tax office presumes the car is also used privately.

What is the company car tax limit in Poland for 2026?

From 1 January 2026 the cap is PLN 225,000 for electric and hydrogen cars, PLN 150,000 for petrol or diesel cars with CO2 below 50 g/km, and PLN 100,000 for other combustion cars and most hybrids. It applies to leasing, rental and depreciation. The part above the cap is excluded from costs proportionally.

Can I buy out a leased car and sell it tax-free?

Not straight away. Selling a car bought out of an operating lease within 6 years of the buy-out is business income, even if the buy-out was private. Selling a car on which VAT was deducted usually also triggers VAT. Calculate both taxes before deciding and confirm them with your accountant.