Poland: Summaries of recent Supreme Administrative Court decisions
Calculating deductible VAT for vehicle expenses; COVID-19 depreciation write-offs for self-produced assets; tanks not exclusively used for storage subject to real estate tax
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October 14, 2025
The Supreme Administrative Court on October 7, 2025, held that:
- In calculating the amount of deductible value added tax (VAT) for expenses related to vehicles used for both business and private purposes, taxpayers must determine (according to the rules set out in Article 86(2a)–(2h) of the VAT Act) the input tax attributable to their business activity and then apply the deduction referred to in Article 86a(1) of the VAT Act to the amount thus calculated (i.e., 50% of the input tax on expenses related to motor vehicles) (case file I FSK 1585/22).
- Article 38k of the Corporate Income Tax (CIT) Act, which allows one-off depreciation write-offs on the initial value of fixed assets acquired to produce goods related to counteracting COVID-19, also covers the self-production of fixed assets (case file II FSK 48/23).
- A tank used for collecting substances not only for the sole purpose of storage (whether short- or long-term) in an unchanged state, but also for other purposes, such as separation or processing, may be treated as a non-building structure subject to real estate tax. The fact that the tanks are not used exclusively for storage, but that certain technological processes take place within them (aimed at changing the physical, chemical, or other properties of the substance), is not sufficient to conclude that they are not tanks within the meaning of Article 3(3) of the Construction Law (case file III FSK 738/24).
Read an October report prepared by the KPMG member firm in Poland