Car leasing in a sole proprietorship (JDG) in Poland in 2026 — VAT, costs and buyback

Operating and finance lease

Under an operating lease (leasing operacyjny), tax depreciation (amortyzacja) write-offs are, as a rule, made by the financing party, while the user accounts for the qualified lease payments.

Under a finance lease (leasing finansowy), the tax write-offs are made by the user. This does not automatically mean that from the first day they become the legal owner of the vehicle.

The detailed consequences depend on the terms of the contract, not just its commercial name.

VAT: 50% for mixed use

If the car is used for both business and private purposes, an active VAT taxpayer deducts, in principle, 50% VAT on:

• the initial payment and installments,
• fuel,
• service and parts,
• the buyback intended for mixed use.

At 50% deduction you do not keep the mileage log required for full VAT deduction.

VAT: 100% only for exclusively business use

Full deduction requires excluding private use and meeting the formal conditions. This usually includes:

• rules for using the vehicle,
• a mileage log for VAT,
• timely submission of the VAT-26 form,
• actual use exclusively in the business.

Simply entering the car into the business or buying it out of the lease does not automatically give a 100% deduction.

Car cost limits in 2026

For passenger cars there are three limits depending on the drivetrain and CO₂ emissions:

• 225 000 zł — an electric or hydrogen vehicle,
• 150 000 zł — a combustion vehicle with emissions below 50 g/km,
• 100 000 zł — a combustion vehicle with emissions of at least 50 g/km.

The car value used when calculating the proportion also includes the VAT that the taxpayer cannot deduct.

Which part of the installment is subject to the proportion

Under an operating lease, the limit does not automatically cut the whole installment. The restriction applies to the part of the payment that repays the car's value.

The financing part, the interest part, or the part corresponding to the cost of financing must be separated out based on the contract and the schedule. You should not multiply the entire gross installment amount by a simple proportion without checking its structure.

An example proportion for the capital part is:

applicable limit / car value recognized for tax purposes

If the value does not exceed the applicable limit, this restriction does not reduce the capital part of the payments.

Fuel, service and other expenses

For mixed use, 75% of the expenses related to using the car — including fuel and service — are, in principle, counted as income tax (PIT) costs. The cost basis is the net amount increased by the VAT that was not deducted.

With properly documented exclusively business use, operating expenses can be a 100% cost.

Insurance premiums are accounted for under separate rules. They should not automatically be covered by the 75% limit; for some insurance, in particular comprehensive cover (AC), a restriction related to the car's value applies.

Leasing under lump-sum tax (ryczałt)

Installments, fuel and service do not reduce the lump-sum tax (ryczałt) on recorded revenue. An active VAT taxpayer can, however, deduct VAT under the 50% or 100% rules, if the purchase serves taxable activities.

The lump-sum tax form alone does not grant the right to VAT. A taxpayer exempt from VAT does not deduct input VAT.

The buyback is a separate acquisition

Buying out the car is not automatically a one-time cost, nor an automatic right to 100% VAT.

If the initial value of the bought-out vehicle does not exceed 10 000 zł, a one-time recognition of the expense may be possible. At a higher value, a car meeting the definition of a fixed asset is, as a rule, entered into the register and depreciated.

At buyback, you again check:

• the intended use of the vehicle,
• the right to deduct VAT,
• the initial value,
• the applicable limit of 100 000, 150 000 or 225 000 zł,
• the planned way of later use and sale.

Leasing, cash purchase and loan

• operating lease — qualified lease payments, with a restriction on the part that repays the car's value,
• cash purchase — depreciation, unless a one-time recognition can be applied,
• loan — depreciation of the car plus qualified interest and financing costs; repayment of the loan principal is not a cost.

The comparison must take into account the price, the down payment, the installment structure, the buyback, VAT, the car limit and the form of taxation.

Documentation

An expense should be confirmed with a proper document, for example an invoice or — if it meets the conditions — a receipt with a tax identification number (NIP) that constitutes a simplified invoice.

There is no rule that a receipt is mandatory or better than an invoice.

Most common mistakes

1. Applying a single 150 000 zł limit to every car.
2. Restricting the whole installment by the proportion instead of the part that repays the car's value.
3. Treating the buyback as always a one-time cost.
4. Deducting 100% VAT without excluding private use.
5. Including all insurance in the ordinary 75% limit.
6. Booking the loan principal as a cost.
7. Deducting VAT by a taxpayer using the exemption.

Sources

• Podatki.gov.pl — car in the business
• PIT Act — text in ISAP

Do you have a lease or are you planning a buyback?

Oxyok handles installments, VAT, operating costs and fixed assets in a sole proprietorship (JDG). Bookkeeping costs from 49 zł + VAT per month.

Write to Paweł or see Oxyok bookkeeping.

This material is general in nature. The outcome depends on the contract, the installment structure, the vehicle's emissions, VAT and the way it is used.