Car leasing in Poland in 2026: VAT and tax costs for a JDG

Leasing a car through your Polish JDG? Separate VAT recovery, the 2026 vehicle-value limits, running costs and buyback before comparing offers.

A lease payment is not automatically a fully deductible business expense. For a Polish JDG, you need to separate VAT recovery from income-tax costs, then check the car’s value, emissions, use and the repayment schedule. If you use ryczałt, lease costs do not reduce that revenue-based tax, even though VAT recovery may still be available.

Before signing, ask for a schedule separating the vehicle repayment from financing charges, the buyback price and evidence of the car’s CO₂ emissions. Those details make the offers comparable.

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.

The transition rules also matter. The Finance Ministry’s published position distinguishes cars already in the taxpayer’s fixed-asset register before 2026 from cars used under operating leases signed before 2026. An older operating-lease contract does not, by itself, preserve the old limit. Check the contract’s tax classification and the relevant register date before using a historical threshold.

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.

For example, a PLN 100,000 limit against a tax-recognized car value of PLN 160,000 gives a 62.5% proportion. If an eligible payment contains PLN 2,000 of vehicle repayment, PLN 1,250 of that part falls within the limit. Financing charges, VAT and running costs still need their separate calculations. This example illustrates the proportion, not your final tax saving.

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

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

Sources

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

If you are still choosing your tax method, compare the tax options for a foreign-owned JDG before assuming that a lease will reduce your income tax.

Contact Oxyok about accounting for your Polish JDG. We communicate in English and Polish. Share the offer or repayment schedule, VAT status, tax method and intended business/private use. We can identify the documents needed to account for the lease. Do not send banking passwords. You can also email Paweł.

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.