Electric vehicle expenses deduction – Can a company include electric vehicle-related costs in its business expenses? Is it possible to deduct electricity reimbursements paid to employees? What is the tax authority’s view on this? What documentation is required? These questions were recently addressed by Piotr Sekulski, PhD in an expert commentary published on the legal portal Prawo.pl, where he explained when electric vehicle expenses can be tax-deductible for Polish companies.
W artykule dostępnym pod niniejszym linkiem znajdziemy sporo ciekawych informacji na temat podatkowych aspektów, a w szczególności czy eksploatacja elektryka w kosztach może być ujęta?
tax advisor Piotr Sekulski, PhD
„The tax authority’s position regarding employee reimbursements should be considered reasonable. The Director of the National Tax Information (KIS) confirmed earlier guidance stating that if an employee uses a company-owned electric car for private purposes, the resulting taxable benefit is a flat rate of PLN 250 per month.
This flat rate also includes operating costs, such as charging. Therefore, the reimbursement of electricity costs by the employer does not generate any additional income for the employee.”
tax advisor Piotr Sekulski, PhD
“(…) The tax authority’s position is clearly favorable for taxpayers. However, attention must be paid to how the expenses are documented in the request for an individual tax ruling.
In the example provided, the company stated that the employee’s residential garage includes a separate submeter that records only the electricity used for charging the specific company vehicle.
Additionally, the charging station is equipped with an AC charger connected to a cloud-based monitoring system that tracks electricity consumption.
Along with VAT invoices, the employee will also provide the company with detailed energy usage reports.
This means that companies intending to deduct such costs must also be prepared to provide detailed supporting documentation to the tax authorities”
If you’re wondering how to settle electricity reimbursements for employees and whether electric vehicle expenses in business costs are worth the effort, feel free to contact us at www.outsourced.pl .
In the topic of electric vehicle expenses deduction – We’ll assess your specific situation, explain available tax advantages, and help ensure compliance. For more complex cases, we can also support you with drafting individual tax ruling requests.
