Poland: Reduced excise duty for hybrid vehicles; hidden profits of CEO; VAT treatment of granting loan; government R&D funds not subject to VAT
Summaries of recent Supreme Administrative Court decisions
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october 29, 2025
The Supreme Administrative Court recently held that:
- Vehicles equipped with internal combustion engines that are electrically assisted may qualify for reduced excise duty rates, regardless of the type of hybrid drive used (case file I FSK 2037/24).
- Half of the expenses related to the use of a vehicle for both private and business purposes, incurred by a company’s CEO who is also its shareholder, must be treated as hidden profits (case file II FSK 125/23).
- Since granting a loan does not involve the use of any company assets in terms of input tax, it must be considered an occasional transaction for value added tax (VAT) purposes. In addition, because the loan repayment supervision service related solely to VAT-exempt sales and was not connected to any taxable sales, the company was not entitled to deduct input tax in relation to the service (case file I FSK 1504/22).
- Funds received through the consortium leader from the National Centre for Research and Development (NCBR) for the co-financing of scientific research and development (R&D) work within a project were not subject to VAT (case file I FSK 1387/22).
Read an October 2025 report prepared by the KPMG member firm in Poland