Approval from April 1, 2014

Service-Tax

Over the years, there have been numerous changes regarding the deduction of VAT on cars. Vehicles whose use in the company gave the right to deduct VAT were usually distinguished according to the parameters they had, such as the total weight of the vehicle, the number of seats or the permissible load capacity, in relation to the specific values ​​specified in the act.

Provisions of the VAT Act and the Road Traffic Act

The VAT Act in the wording in force until March 31, 2014, as vehicles for which there is no VAT deduction limit, indicates, inter alia, motor vehicles with a total weight of less than 3.5 tonnes, in which the number of seats (seats), including the driver's seat, is:

a) 1 - if the maximum load capacity is equal to or greater than 425 kg,

b) 2 - if the maximum load capacity is equal to or greater than 493 kg,

c) 3 or more - if the maximum load capacity is equal to or greater than 500 kg.

Additionally, pursuant to Art. 86 sec. 4 of the VAT Act (before April 1, 2014) and art. 12 sec. 3 of the Act of February 7, 2014 amending the Act on tax on goods and services and certain other acts (coming into force on April 1, 2014), it was clarified that the permissible load capacity of the vehicle and the number of seats (seats) are determined on the basis of documents issued in accordance with the provisions of the road traffic law.

Therefore, in order for a car that meets the above parameters to give the taxpayer the right to deduct 100% VAT, it was required to have approval.

Polish roads are used mainly by cars, the year of production of which varies from 1 to 15 years back. Depending on when they were registered, approval was obtained on different principles, which will be discussed in more detail.

An important fact for past certificates granting a vehicle the status of a truck and full right to deduct VAT is the fact that if, after the period in which the certificate was issued, no structural changes have been made to the vehicle that could exclude the characteristics stated in the certificate, such a vehicle should still be be considered a truck according to the VAT Act.

Approval - what is it?

Approval is understood as checking a device in order to grant permission for its production, operation or sale. However, approval may also be the approval issued after such verification.

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Commonly, approval is also a permit for the use of motor vehicles, as a rule, in the country where the permit was issued. However, due to Poland's membership in the Community, the validity of this certificate also covers the territories of other countries belonging to the European Union.

Hence, automotive manufacturers attach such an important role to the meaning of this certificate. Obtaining the approval gives the possibility of actively selling the produced cars.

The approval in Poland can be divided into three periods

The form of approval in Poland has changed over the years. This period can be divided into three stages, in which the rules for car registration changed significantly, and this, in turn, was reflected in the change in the parameters that should be characterized by homologated cars. It started with short annotations in the registration certificate, up to the N1 approval, which was so loud in 2014.

Stage I - cars registered at the end of the 90's until 2004

The indicated period was characterized by the fact that the status of the car was determined by an annotation in the registration documents saying, inter alia, on whether it is a truck with the number of seats and the permissible load.

Example:

A car registered in 2002, which met the above parameters, is still considered a truck - due to the fact that at that time the provisions of the Road Traffic Act confirmed the technical conditions of the vehicle in one way and no other way. At that time, there was no question of N1 approval.

Stage II - vehicles produced until 2004 but registered with a later date

Then, in order to obtain the appropriate certificate, one had to visit the car manufacturer. Based on information from the car dealer, the vehicle was classified as a truck or not. At that time, the certificate could also be obtained at regional vehicle inspection stations, which, based on the tests carried out, were entitled to determine whether the vehicle meets the requirements or not.

The so-called The "long number", i.e. the first 18 characters in the registration certificate, used to define the type of approval.

Stage III - in Poland it falls on the period after June 22, 2013.

The cut-off date is determined by the entry into force of the amendment to the road traffic law, which implemented the provisions of Annex XIX of Directive 2007/46 / EC into Polish regulations. Based on the changes, the dates after which the vehicle registration will be linked to the CoC document (EC Certificate of Conformity) have been defined. This document is to confirm the European approval certificate held by the car.

The purpose of the changes in the regulations was to eliminate older cars which, according to the previous legal status, were considered heavy goods vehicles, and should not be such after the change in the regulations. From that moment on, the vehicles in stages one and two could no longer obtain truck status.

In practice, however, it turned out differently. Due to legal turmoil, the legal status from 2004 was restored and allowed older cars to be fully deducted.

This situation is currently of great importance for the deduction of VAT on the purchase of fuel for vehicles after April 1, 2014. Cars that will be trucks (meet the parameters referred to in the Act) on the basis of the approval document may use partial (50%) VAT deduction from invoices for fuel purchases, unlike most other vehicles below 3.5 tons. However, an absolutely necessary condition is the use of these cars in taxable economic activity.