VAT on Fuel for a Sole Proprietorship in Poland in 2026 — 50% or 100%

Mixed Use: 50% VAT

If the car may be used for both business and private purposes, the VAT deduction on fuel is generally 50%.

You do not then need to keep the mileage log required for a full VAT deduction. The remaining, non-deductible portion of VAT may increase the expense recognized for PIT purposes.

Business-Only Car: 100% VAT

A full deduction requires the manner in which the vehicle is used to rule out private purposes. You usually need to meet all requirements concerning:

• the rules for using the car,
• a vehicle mileage log for VAT purposes,
• filing VAT-26,
• actual use exclusively for business.

A statement or entering the car in a register is not enough if the manner of use does not rule out private journeys.

Invoice or Receipt

Fuel should be documented with an invoice or another document that meets tax requirements.

A receipt bearing the buyer's NIP may constitute a simplified invoice if its total amount does not exceed PLN 450 or EUR 100 and it contains the required information.

• a correct invoice is the appropriate document regardless of the amount,
• an ordinary receipt without the buyer's NIP does not automatically give the right to deduct VAT,
• above the simplified-invoice limit, you must obtain a correct invoice.

There is no rule that fuel requires a “receipt instead of an invoice.”

PIT Cost for Mixed Use

For a passenger car also used privately, generally 75% of operating expenses may be included in tax-deductible costs.

For an active VAT taxpayer, the basis is not only the net amount. It also includes VAT that cannot be deducted.

Example

Fuel invoice:

• PLN 100 net,
• PLN 23 VAT,
• PLN 123 gross.

For mixed use:

• VAT deduction: PLN 11.50,
• non-deductible VAT: PLN 11.50,
• PIT cost basis: PLN 100 + PLN 11.50,
• tax-deductible cost: PLN 111.50 × 75% = PLN 83.62.

Calculating 75% only on the net amount would understate the cost.

PIT Cost for Business-Only Use

If the car is genuinely used exclusively for business and the taxpayer keeps the required records, the operating expense may be 100% tax-deductible.

The right to recognize the cost still requires a connection with the business and a correct document.

Insurance Is Accounted for Separately

The 75% limit applies to car-use costs such as fuel and servicing. Insurance premiums should not automatically be put in the same category.

A separate limit based on the car's value may apply to some premiums, particularly comprehensive motor insurance (AC). Compulsory third-party liability insurance (OC) and other premiums must be assessed under the relevant rule.

Electric and Hybrid Cars

The type of powertrain does not automatically allow a 100% VAT deduction on fuel or charging for mixed use.

• mixed use — generally 50% VAT,
• business-only use with the conditions met — 100% VAT.

From 2026, the cost limits related to a car's value are:

• PLN 225,000 for electric and hydrogen vehicles,
• PLN 150,000 for combustion-engine cars with CO₂ emissions below 50 g/km,
• PLN 100,000 for combustion-engine cars with CO₂ emissions of at least 50 g/km.

These limits apply, among other things, to depreciation and specified leasing fees. They do not change the VAT deduction percentage for fuel itself.

Lump-Sum Tax

Fuel does not reduce lump-sum tax on recorded revenue. An active VAT taxpayer may nevertheless deduct 50% or 100% of VAT under the car rules if the purchase is used for taxable activities.

A taxpayer benefiting from a VAT exemption does not deduct input VAT merely because they account for PIT under lump-sum tax.

Most Common Mistakes

1. Requesting a receipt instead of a correct invoice.
2. Deducting 100% of VAT for mixed use.
3. Calculating the PIT cost only on the net amount and omitting non-deductible VAT.
4. Applying the ordinary 75% limit to insurance.
5. Automatically assigning a 100% VAT deduction to electric cars.
6. Deducting fuel costs from lump-sum tax.
7. Deducting VAT as an exempt taxpayer.

Sources

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

Need to Account for a Car in Your Sole Proprietorship?

Oxyok accounts for fuel, leasing, VAT, and operating expenses. Accounting starts at PLN 49 + VAT per month.

Write to Paweł or see Oxyok accounting.

This material is general in nature. The deduction depends on VAT status, how the vehicle is used, and its documentation.