European Commission Adopts Proposal for Council Decision on Polish VAT Deduction Limit for Vehicle Expenses

The European Commission (EC) July 10 adopted Proposed Council Implementing Decision No. COM (2025) 383, amending Implementing Decision (EU) 2013/805 to extend Poland’s authorization to derogate from Council Directive 2006/112/EC on the common system of VAT by restricting the input VAT deduction for passenger cars partially used for non-business purposes. The derogation permits Poland to limit the VAT deduction to 50 percent of expenses related to purchases, leases, intra-Community acquisitions, and imports of such cars and related repair and fuel costs. The proposed decision includes measures to: 1) extend Poland’s authorization to Dec. 31, 2028, from Dec. 31, 2025; and ...