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!