After April 1, 2014, remember about additional technical examinations of the vehicle

Service-Tax

Amendments to the VAT Act impose additional formal obligations on entrepreneurs. Even if, under the Act, selected vehicles will not require mileage and must be reported to the office, they will be required to carry out additional technical tests.

Motor vehicles considered to be used exclusively for the taxpayer's business activities

Pursuant to the provisions of the amended VAT Act, motor vehicles used only for the purposes of the conducted activity are those for which the established rules of use, additionally confirmed by the taxpayer's vehicle mileage records, exclude their use for purposes other than business purposes. But also those whose design precludes their use for non-business purposes or makes their use for non-business purposes irrelevant.

Art. 86a sec. 4 of the amended VAT Act (from April 1, 2014)

Motor vehicles are considered to be used exclusively for the taxpayer's business if:

1) the method of using these vehicles by the taxpayer, in particular those specified in the rules of their use established by him, additionally confirmed by the vehicle mileage records kept by the taxpayer, excludes their use for purposes not related to economic activity or

2) the design of these vehicles precludes their use for purposes not related to business activity or makes their use for non-business purposes irrelevant.

This article will deal with issues relating to this second group of vehicles.

Cars designed for business purposes only

Motor vehicles, the design of which precludes their use for purposes not related to economic activity, are, in accordance with the Act, vehicles listed in Art. 86a paragraph 9 of the amended act.

Art. 86a sec. 9 of the amended act

For motor vehicles referred to in paragraph 1. 4, point 2, include:

1) motor vehicles, other than passenger cars, with one row of seats, separated from the part intended for the carriage of cargo by a wall or a permanent partition:

a) classified on the basis of road traffic regulations into the following subtype: multi-purpose, van or

b) with an open part intended for the transport of loads >> the so-called pickups <<;

2) motor vehicles, other than passenger cars, with a driver's cabin with one row of seats and a body intended for the carriage of loads as structurally separate elements of the vehicle;

3) special vehicles that also meet the conditions contained in separate regulations, specified for the following purposes:

a) electric / welding aggregate,

b) for drilling work,

c) excavator, backhoe-bulldozer,

d) charger,

e) a lift for maintenance and assembly works,

f) truck crane

- if the documents issued in accordance with road traffic regulations show that the vehicle is a special vehicle.

However, in order to determine whether the car owned by the taxpayer falls within the statutory definition of a car designed exclusively for business purposes, its parameters must be confirmed by a technical inspection and recorded in the vehicle documents.

Additional roadworthiness tests for vehicles the design of which precludes their use for non-business purposes

Whether the vehicles listed in Art. 86a paragraph 9 meet the requirements of the Act, depending on the type of vehicle:

Vehicle

Requirements

With one row of seats separated by a wall or a permanent partition:

  • multitasking
  • van
  • with an open load carrying section
  • a certificate issued by a district vehicle inspection station on the basis of an additional technical examination
  • the vehicle registration certificate containing the appropriate annotation about the fulfillment of the requirements

With a driver's cabin with one row of seats and a body dedicated to the load conduit

Special vehicles:

  • electric / welding aggregate,
  • for drilling work,
  • excavator, backhoe-bulldozer,
  • charger,
  • a hoist for maintenance and assembly works,
  • truck crane
  • documents issued in accordance with road traffic regulations

Until June 30, it is time for an additional technical examination

If the taxpayer uses in his activity vehicles which are listed in the act as those whose construction excludes their use for purposes other than the activity, he must remember to conduct additional technical inspections by the end of June 2014 at the latest.

Art. 9 sec. 1 of the Act of February 7, 2014 amending the Act on tax on goods and services and certain other acts

Additional technical examination, as referred to in Art. 86a paragraph 10 point 1 of the Act amended in Art. 1, as amended by this Act, should be carried out within the next mandatory periodic technical inspection, but not later than within 3 months from the date of entry into force of this Act.

If the taxpayer already has the following certificates issued before the entry into force of the Act on Amendments to VAT (i.e. issued before April 1, 2014):

  • motor vehicles with one row of seats, separated from the part intended for the carriage of loads by a wall or a permanent partition, classified on the basis of road traffic regulations into the following sub-types: multi-purpose, van

they remain valid for the application of Art. 86a (9) (1) (a) of the amended act. This means that if the taxpayer owns motor vehicles other than passenger cars, with one row of seats, separated from the part intended for the carriage of loads by a wall or a permanent partition, classified under the road traffic regulations into the sub-type: multi-purpose, van, then there is no the obligation to perform further additional tests at the district vehicle inspection station by 30 June.

Why is carrying out additional tests within the specified time limit so important? Because this generates the basis for recognizing the vehicle as compliant with the regulations, and thus allows the taxpayer to deduct 100% VAT from the operating expenses related to a given vehicle without the need to keep additional mileage records.