Hearse and armored car - how to properly account for VAT?
Accounting for VAT on expenses related to motor vehicles other than heavy goods vehicles with a maximum permissible weight of more than 3.5 tonnes may be quite difficult for taxpayers. Along with the April amendment, new formalities and additional divisions as well as formal requirements in the form of vehicle mileage records for VAT purposes were introduced, which additionally made settlements difficult for taxpayers. An entrepreneur who wants to correctly settle VAT should read the act and additional regulations in this matter. In the case of the latter, particular attention should be paid to entrepreneurs who use special vehicles in their activities, such as bank cars and caravans.
Hearse and armored vehicle - special vehicles
Taxpayers with the so-called special vehicles are entitled to a full deduction of VAT on the purchase of the vehicle and on the related expenses. Importantly, these vehicles do not require taxpayers to keep additional mileage records. As stated in Art. 86a paragraph 4 pts 2, due to the construction of these vehicles, it is not possible to use them for private purposes, or it makes such use irrelevant for tax settlements.
Art. 86a sec. 9 points 3 of the Act contains a list of cars considered to be special vehicles. These include, among others: an electric or welding unit, a vehicle intended for drilling work, an excavator and a backhoe-bulldozer, a loader, a lift for maintenance and assembly works, and a truck crane. Theoretically, the catalog of these vehicles is closed, however, as indicated in paragraph 16 of the indicated article, the above list may also include other vehicles listed in the regulations issued by the Minister of Finance - among them we can find, among others, bank cars and caravans.
Both the armored car and the caravan were included in the Ordinance of the Minister of Finance of March 27, 2014 on motor vehicles considered to be used only for the taxpayer's business activity. According to his par. 2:
§ 2. For motor vehicles other than those specified in Art. 86a paragraph 9 of the Act considered to be used only for the taxpayer's business activity, motor vehicles are special purpose vehicles:
- if they have one row of seats or their permissible total weight is greater than 3 tonnes.
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Special vehicles: armored car and hearse - technical requirements
Including armored vehicles and funeral vehicles as special vehicles is good news for the taxpayer that he can fully deduct input tax from these vehicles, without additional formal burdens. However, it should be remembered that the mere name of a caravan or an armored vehicle may not be a sufficient argument in the face of the tax office. So what conditions must be met?
These vehicles should have a permissible total weight of more than 3 tons or one row of seats. Further requirements are specified in par. 3 - in accordance with it, the detailed technical data of vehicles have been defined in two separate acts, including in the Regulation of the Minister of Health of 27 December 2007 on the issue of permits and certificates for the transport of human corpses and remains, it defines the provisions on the technical aspects of the hearse. Detailed sanitary and technical requirements are specified in par. 4 point 1 of the Regulation:
§ 4 point 1. The means of road transport intended for the transport of human remains and remains should meet the following technical and sanitary requirements:
Pursuant to the provisions of the road traffic law, a compliant funeral vehicle should be registered as a special vehicle.
On the other hand, the regulations in the case of armored vehicles were included in Annexes 3 and 4 to the Ordinance of the Minister of the Interior and Administration of September 7, 2010 on the requirements for the protection of monetary values stored and transported by entrepreneurs and other organizational units. Type A bank cars are described in detail in Annex 3:
1. Type A bank car must meet at least the following general technical requirements:
2. The engine compartment should have an automatic fire extinguishing system and a fuel tank made in a way that is safe against explosion.
3. A type A bank vehicle should be equipped with a modular vehicle alarm system meeting the requirements of Directive 74/61 / EEC or UNECE Regulation No. 116, with at least the following characteristics:
4. A type A bank car should be equipped with an alarm transmission system providing at least information about:
5. Electronic and electrical equipment installed in the vehicle should meet the requirements of Council Directive 72/245 / EEC of 20 June 1972 on the approximation of the laws of the Member States relating to the suppression of radio interference caused by positive ignition engines used in the field of electromagnetic compatibility. in motor vehicles (Official Journal of the European Union, Polish special edition, chapter 13, vol. 1, p. 226) or Regulation No. 10 of the United Nations Economic Commission for Europe - Uniform provisions concerning the approval of vehicles with regard to electromagnetic compatibility.
6. Additional electrical installation of the vehicle (after construction) should meet the requirements of the PN-S 76021 standard (types and scope of tests as per point 4.1.b, table 2, column 4 of this standard).
7. The wheels of the vehicle should be made with massive inserts or in some other structure allowing, after a puncture, a further drive for 15 km at a speed of 50 (+/- 5) km / h.
8. The use of gas installations in type A armored vehicles is not allowed.
On the other hand, detailed information on the type B armored vehicle is included in Annex 4:
1. Type B bank car must be equipped with:
2. Electronic and electrical equipment installed in the vehicle should meet, with regard to electromagnetic compatibility, the requirements of Council Directive 72/245 / EEC of 20 June 1972 on the approximation of the laws of the Member States relating to the suppression of radio interference caused by ignition engines. spark plugs used in motor vehicles (Official Journal of the EU, Polish special edition, chapter 13, vol. 1, p. 226) or Regulation No. 10 of the Economic Commission for Europe of the United Nations - Uniform provisions concerning the approval of vehicles in the field of electromagnetic compatibility.
3. Additional electrical installation of the vehicle (after construction) should meet the requirements of the PN-S 76021 standard (types and scope of tests as per point 4.1.b, table 2, column 4 of this standard).
4. The wheels of the vehicle should be made with massive inserts or in some other structure allowing, after a puncture, a further drive for 15 km at a speed of 50 (+/- 5) km / h.
5. The use of gas installations in the type B armored vehicle is not allowed.
Importantly, the taxpayer is obliged to document the fulfillment of the above conditions - in accordance with the provisions of the road traffic law. Please note that vehicles that meet the requirements of the Type C armored vehicle cannot be classified as special vehicles - more information on this type of vehicle is provided in Annex 5 of the Regulation.