Choosing the right company vehicle is not just a logistical decision—it directly affects your accounting, taxes, and overall business costs. In Poland, the tax treatment of a passenger car and a truck differs significantly, particularly when it comes to VAT deductions, amortization, and operational expenses.

How much VAT can you deduct on a passenger car vs. truck?

The most important question for many entrepreneurs is how much VAT they can deduct from a company vehicle purchase. 

Only 50% of VAT can be deducted if the car is used for both business and private purposes. To qualify for a 100% VAT deduction, the vehicle must be used exclusively for business, reported on VAT-26, and backed by a detailed mileage log. 

Vehicles classified as trucks generally allow for a full 100% VAT deduction without keeping a mileage log, provided their construction rules out private use. This makes trucks an attractive option for businesses seeking maximum VAT benefits. 

How do tax authorities classify passenger car vs. truck?

It is worth noting that not every vehicle registered as a “truck” automatically guarantees a full VAT deduction. Tax authorities carefully scrutinize vehicles such as double-cab pickups or vans with two rows of seats. Even if these are officially “trucks,” to deduct VAT in full they must be reported on VAT-26 and restricted solely to business use. The key VAT distinction is based on vehicle mass (above or below 3.5 tons) and the number of seats.

Depreciation rules – passenger car vs. truck

The vehicle you choose also impacts how you amortize it for tax purposes. 

Passenger cars are a subject to a 150,000 PLN depreciation limit (225,000 PLN for electric cars). Any value above this threshold cannot be deducted as a tax cost. 

Trucks are not subject to depreciation limits. Their full purchase value can be amortized, regardless of price, offering a substantial tax advantage. 

This makes trucks more attractive from a long-term tax perspective, especially for high-value vehicles. 

Business vehicle costs

Another frequent question from entrepreneurs is: how much of my fuel, servicing, and repair costs can I deduct? 

If passenger cars are used for both business and personal purposes, only 75% of operating expenses can be treated as tax-deductible costs. Only vehicles used exclusively for business (and properly documented) qualify for 100% deductions. 

Trucks can usually get full deduction of operating costs, without the need for mileage records. Moreover, this flexibility gives trucks an edge in terms of everyday cost optimization. 

Should you register your passenger car as a business vehicle?

Many entrepreneurs use their private cars for business. While this may seem convenient, the tax benefits are limited: 

• only 20% of expenses can be counted as tax-deductible, 
• VAT deduction is capped at 50%, just like with a standard passenger car used in mixed mode,
• for long-term efficiency, it is often better to add the vehicle to the company’s fixed assets register, allowing for amortization and broader tax benefits. 

How to decide between a passenger car vs. truck for your business?

If your main goal is to maximize tax benefits, a truck offers clear advantages: 

• 100% VAT deduction without mileage logs,
• no depreciation limit, unlike passenger cars,
• full deduction of fuel, repair, and maintenance costs. 

Passenger cars, however, provide greater flexibility and comfort—sometimes better suited for entrepreneurs who use one vehicle for both personal and professional purposes. The right choice depends on your specific business needs and how the vehicle will actually be used. 

If you need additional support in accounting and hr&payroll services contact us!

Text based on: INFORLEX