How to document expenses for car operation in the company?
Entrepreneurs in any industry can use a car, as it is often indispensable to solve various corporate matters. Therefore, it is important to know how to document the expenses for the operation of the car in the conducted business activity.
Basic accounting documents
The basic accounting vouchers on the basis of which the expenses for the operation of a company car are recorded are invoices and bills, and in case of their absence - in exceptional cases - internal evidence. On their basis, the taxpayer makes entries in the book of revenues and expenses - in the net amount if the car to which the expenses relate is used only for business purposes and if the entity is an active VAT payer, or in the amount of 75% of the net amount if the company car is also used privately. When the taxpayer is a non-payable person, the expenses should be included in the KPiR in the total gross amount (it is recommended to keep mileage such as for VAT purposes in order to prove that the car is used only in business), or in the amount of 75% of the gross amount in the case of private and business use of the car.
It is also possible to post expenses on the basis of receipts and similar accounting documents - but only in the case of expenses incurred abroad for the purchase of fuel and the use of a toll motorway. Such a receipt (cash register) must be dated and stamped (designation) by the issuing unit, specifying the quantity, unit price and value for which the purchase was made. On the back of the receipt, the taxpayer must complete its content by entering his name (plant name), address and type (name) of the purchased goods. On the basis of such a receipt, you can also prepare an internal proof in order to make an entry in the book on its basis, and attach the receipt or receipt to the proof.
From 2020, the receipt with the buyer's NIP number up to the amount of PLN 450 is a simplified invoice. Such a document may constitute an accounting document, which is the basis for entries in the KPiR and the VAT register.
If the car is not owned by the company (a person running a business), the taxpayer may only include expenses for its operation in the amount of 20%.
Vehicle mileage records are kept in a situation where the company car is used only for business purposes for the purpose of full VAT deduction and as evidence confirming the right to include the entire amount of expenses related to the use of the vehicle.
VAT vehicle mileage records
In order to be able to deduct 100% VAT on operating expenses, it is necessary to:
- drawing up the regulations of the rules of using the vehicle in the company,
- reporting the vehicle to the tax office on the VAT-26 form,
- using the car only in business, which is confirmed by running mileage allowances for VAT purposes.
The vehicle mileage record kept for VAT purposes should contain:
1) the registration number of the motor vehicle,
2) the day of starting and ending keeping the records,
3) the mileage meter reading of the motor vehicle on the day of the start of keeping the records, at the end of each accounting period and on the day of ending the keeping of the records,
4) entry of the person driving the motor vehicle for each use of this vehicle, including:
a.the consecutive number of the entry,
b date and purpose of departure,
c. description of the route (from where - where to),
d. the number of kilometers traveled,
e. name and surname and signature of the person driving the vehicle,
- confirmed by the taxpayer as to the authenticity of the entry of the person driving the vehicle, if he is not a taxpayer,
5) the number of kilometers traveled at the end of each accounting period and on the day of ending keeping the records.
Kilometrówka is to prove that the vehicle is used only for company purposes, therefore the taxpayer is entitled to a 100% VAT deduction and to include 100% of the expenses related to the use of the vehicle in tax deductible costs to the KPiR.
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Expenses for the operation of the car in the wfirma.pl system
In the wfirma.pl system, users can easily settle expenses for car operation.
Just go to the EXPENSES »ACCOUNTING» ADD EXPENSES »VAT INVOICE or INVOICE (EXCLUDING VAT) tab. Then, in the window for adding a new expense, complete the required fields, including selecting the type of expense. OTHER EXPENDITURE RELATED TO THE CURRENT USE OF THE CAR or PURCHASE OF FUEL and mark the registration number of the vehicle to which the expense relates.
In the case of a company vehicle, after saving, the expenses for the operation of the car will be automatically booked in the VAT purchase register (in the case of active VAT payers) and KPIR in col. 13 as other expenses.