European Union Gazettes EC Decision on Polish VAT Deduction Limit for Vehicle Expenses

The European Union Official Gazette Sept. 30 published the European Council (EC) Implementing Decision No. 2025/1986, 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 decision includes measures: 1) extending Poland’s authorization to Dec. 31, 2028, from Dec. 31, 2025; and 2) ...