Vehicle mileage record, or mileage - what is worth knowing

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A kilometer for PIT purposes, i.e. vehicle mileage record, is one of the methods of accounting for expenses incurred on a car in the company. It applies to those entrepreneurs who use a private car for business purposes.

Kilometer - what should it include?

A kilometer is about recording the kilometers actually traveled. To be legally compliant, it should contain the following elements:

  • data of the person who uses the car,

  • the registration number of the car,

  • distance traveled - distance, destination and date.

The kilometer specifies the maximum amount of expenses that can be settled in connection with the use of the car.

When can you drive a mileage test?

As already mentioned, the register of vehicle mileage should be kept when the company uses a private car owned by the entrepreneur, employee or a third party. In other words, the mileage allowance is used when a used car has not been entered into the company's fixed assets register. Within the mileage limit, you can settle a car that:

  • it is the company's equipment (it is not included in the company's fixed assets),

  • is private property,

  • is used on the basis of a rental, lease or lending agreement.

The applicable rates in the mileage limit

However, it should be borne in mind that driving mileage does not release the entrepreneur from the need to document expenses related to the operation of the car. This is because tax deductible costs include only those expenses that were actually incurred in connection with the use of a given car in the business. The amount of these expenses is determined on the basis of invoices and bills.

A kilometer distance is not proof of a cost. On its basis, only the limit of expenses related to the use of the car, which can be classified as tax costs, is set. This limit is determined by multiplying the number of kilometers traveled by the rate for 1 km of mileage.

The currently applicable rates for 1 km of vehicle mileage are as follows:

  • for a car with a capacity of up to 900 cm3 - PLN 0.5214,

  • for a car with a capacity of 900 cm3 - PLN 0.8358,

  • for a motorcycle - PLN 0.2302,

  • for a moped - PLN 0.1382.

Transferring expenses to the next billing period

If the costs incurred in a given month related to the operation of the car, i.e. expenses from invoices, bills, etc., exceed the mileage limit, they can be settled for the following months. Because the expenses included in mileage are settled cumulatively. This means that if the costs incurred in a given month are too high to be accounted for this month, then they may be included in the mileage limit for the next month. However, it should be borne in mind that such cost shifting is possible only within a specific tax year. It is not possible to transfer them to the next year.

Lack of records of the vehicle mileage and its consequences

If the entrepreneur uses a car in his business that has not been entered into the register of fixed assets, without leading to it kilometers, then the expenses related to its use cannot be included in the tax costs.