Many entrepreneurs, when starting their business, opt for a subjective VAT exemption, utilizing the annual turnover limit of PLN 200,000. This solution offers several advantages – fewer formalities and simpler accounting. However, over time, as the business grows, the obligation to switch to active VAT status increasingly arises.
And here arises a key question that we often hear:
The answer is: YES – under certain conditions. Pursuant to Art. 91 sec. 7 of the VAT Act, an entrepreneur has the possibility to adjust input tax if they acquired a fixed asset during the exemption period and subsequently opted out of this exemption and registered as an active VAT taxpayer. Of course, this must fall within the timeframe provided by the legislator for such an adjustment.
What does this mean in practice? The possibility of recovering part of the costs incurred for investments – and that means concrete money that can stay within the company!
The line between a business expense and a personal expense can be thin. This is particularly true in the case of a driving course.
For the most popular category B, the answer is (unfortunately) negative. Tax authorities have maintained for years that obtaining a category B driving license is a skill also used in private life, which excludes it from tax-deductible business expenses.
Even if an entrepreneur justifies that a driving license is essential for running their business – the tax office remains inflexible. An example? A 2009 tax ruling where a businesswoman planned to relieve her partner of client visits. The outcome? The course was not recognized as a deductible expense.
The situation is different for category C or E licenses – here it is easier to demonstrate a connection to business activity, for example when expanding operations to include transport.
What about employees? There is room for maneuver here – if a driving course (even category B) is essential for performing their duties (e.g., sales representatives, optometrists), and the cost is properly documented, it may be included in the company’s expenses. The key is well-prepared documentation and linking the expense to job responsibilities.
Before deciding to include the cost of a driving course – it is worth considering carefully and consulting with an accountant. Sometimes prevention is better than explaining corrections.
Running an accounting office, every day we are responsible for more than just accurate bookkeeping – we are responsible for the peace of mind and financial security of our clients.
That is why we place such great importance on securing our professional liability. Although mandatory liability insurance is standard, we have gone a step further.
✅ Our accounting office has liability insurance in the amount of 1.5 million PLN.
Why so much? Because we know how important responsibility is when it comes to the finances of companies, people, and their business decisions.
Insurance is not just a legal requirement – it is a real protective shield. For our clients, it is additional confirmation that they can trust us. And for us – it is an expression of professionalism and care for every detail of our cooperation.
If you work with an accounting office – ask if it has insurance. And if you run an office – check whether your policy is adequate to the real needs of your clients.
The line between a business expense and a personal expense can be thin. This is particularly true in the case of a driving course.
For the most popular category B license – the answer is (unfortunately) no. Tax authorities have maintained for years that obtaining a category B driving license is a skill also used in private life, which excludes it from tax-deductible business expenses.
Even if an entrepreneur justifies that a driving license is essential for running their business – the tax office remains inflexible. An example? A 2009 tax ruling where a businesswoman planned to relieve her partner of client visits. The outcome? The course was not recognized as a deductible expense.
The situation is different for category C or E licenses – here it is easier to demonstrate a connection to business activity, for example when expanding operations to include transport.
What about employees? There is room for maneuver here – if a driving course (even category B) is essential for performing their duties (e.g., sales representatives, optometrists), and the cost is properly documented, it may be included in the company’s expenses. The key is well-prepared documentation and linking the expense to job responsibilities.
Before deciding to include the cost of a driving course – it is worth considering carefully and consulting with an accountant. Sometimes prevention is better than explaining corrections.
From 2025, many companies have faced a completely new obligation: ESG (Environmental, Social, Governance) non-financial reporting. The EU CSRD Directive represents a real change in the approach to conducting business – and this is not just about regulatory compliance, but about building modern, resilient, and responsible organizations.
Who is subject to the new obligations?
➡️ From 2025 – large listed companies employing >500 people
➡️ From 2026 – all large entities (including >250 employees, turnover >€50 million)
➡️ From 2027 – also SMEs that are public interest entities
What needs to be reported?
✔️ environmental impact (e.g., CO2 emissions, climate goals)
✔️ employment conditions – including in the supply chain
✔️ corporate governance and risk management activities
What do we gain from ESG?
As the owner of an accounting firm, I know how challenging regulatory changes can be. But I also know that a well-prepared company will gain a market advantage – in the eyes of clients, partners, and investors alike.
#ESG #sustainabledevelopment #ESGreporting #accountingfirm
Running an accounting office, every day we are responsible for more than just accurate bookkeeping – we are responsible for the peace of mind and financial security of our clients.
Therefore, we place such great emphasis on securing our professional liability. Although mandatory professional liability insurance is standard, we have gone a step further.
✅ Our accounting office holds a professional liability insurance policy for PLN 1.5 million.
Why such a high amount? Because we understand the immense importance of responsibility when the finances of companies, individuals, and their business decisions are at stake.
The policy is not just a legal requirement – it is a real protective shield. For our clients, it is additional confirmation that they can trust us. And for us – an expression of professionalism and attention to every detail of our cooperation.
If you cooperate with an accounting office – ask if it has insurance. And if you run an office – check if your policy is adequate for the real needs of your clients.
Running an accounting office, we often encounter questions that require confirmation of the interpretation of regulations. Recently, we had such a situation with one of our clients operating under the lump-sum tax system.
➡️ The client had a revenue correction that resulted in a negative revenue value in PIT-28. To ensure that we were accounting for everything correctly, we contacted the National Tax Information (KIS) directly.
Here is the most important part of the response we received:
If the value of revenue earned in a given settlement period is lower than the value of the correction made, the remaining portion of the revenue reduction should be accounted for in subsequent settlement periods until the correction is fully reported.
The key factor here is whether the correction results from an error – if not, we apply it in the current period, and if it does not “fit” within the revenue, we account for it in subsequent periods.
The topic of buying out leased cars often arises in questions from our clients – and for good reason! Because while the matter may seem straightforward at first glance, the devil is in the tax details…
If you plan to buy out a car from a lease for your company with the intention of selling it, you must remember a few important points:
✅ VAT:
– If car trading is your business activity, you can deduct 100% of the VAT from the buyout invoice, without keeping a vehicle mileage log.
– However, if you are not involved in car trading – a mileage log + VAT-26 notification will be necessary to claim full VAT deduction.
What if you don’t meet these conditions?
In that case, you are only entitled to deduct 50% of the VAT.
But! At the time of the VAT-taxable resale of the vehicle, you can make an upward adjustment for the remaining (previously undeducted) portion of the VAT.
However, remember that adjustment is only possible during the adjustment period:
– 60 months – if the vehicle value > PLN 15,000
– 12 months – if the vehicle value ≤ PLN 15,000
✅ PIT:
Such a car is not a fixed asset, but rather trading stock – therefore, the expense from the buyout is recorded as a direct cost in column 10 of the KPiR (Tax Revenue and Expense Ledger).
The sale, of course, generates income from business activity – and this arises at the moment the car is handed over or the invoice is issued.
If you have any doubts – get in touch. We help entrepreneurs operate legally, calmly, and… profitably!
Many entrepreneurs, when starting a business, opt for a VAT exemption, utilizing the annual turnover limit of PLN 200,000. This solution has its advantages – fewer formalities, simpler accounting. However, over time, as the business grows, the obligation to switch to active VAT increasingly arises.
And here arises a key question that we often hear:
The answer is: YES – under certain conditions. Pursuant to Article 91 sec. 7 of the VAT Act, an entrepreneur has the option to adjust input tax if they acquired a fixed asset during the exemption period and subsequently waived this exemption and registered as an active VAT payer. Of course, this must fall within the timeframe provided by the legislator for such an adjustment.
What does this mean in practice? The possibility of recovering part of the costs incurred for investments – and these are concrete funds that can remain in the company!
