Car Leasing for Sole Proprietorships in Poland (2026) — VAT and Costs

1. Operating lease (most popular)

You pay monthly installments; the car belongs to the leasing company. After the contract ends you can:

• Buy the car (buy-back / purchase)
• Return the car
• Extend the contract

Advantages:

• Installments are deductible (tax scale/flat tax)
• VAT on installments — 50% or 100%
• No one-time expense

2. Finance lease (less common)

The car is your property from day one. You depreciate it as a fixed asset.

VAT on leasing — 50% or 100%?

It depends on how you use the car:

Mixed use (50% VAT)

If you use the car for both business and private purposes — you deduct 50% VAT on leasing installments and fuel.

Requirement: Maintain a vehicle mileage log (monthly kilometer record).

Business-only (100% VAT)

If you use the car only for business purposes — you deduct 100% VAT.

Requirement: Maintain a detailed vehicle mileage log — time, route, purpose of trip, kilometers. Plus register the car with the tax office as a "business-only vehicle."

The 150 000 zł limit

The limit applies to the value of the car for depreciation purposes (KŚT groups 2 and 5):

• Car up to 150 000 zł net: you deduct full leasing installments
• Car above 150 000 zł net: you deduct installments proportionally (150 000 / car value)

Example:

Car value 200 000 zł net, leasing installment 3 000 zł.

• Proportion: 150 000 / 200 000 = 75%
• Cost: 3 000 × 75% = 2 250 zł (deductible as a cost)

Fuel costs

You deduct fuel as a business cost (under tax scale/flat tax):

• Mixed use: 75% of operating costs (fuel + service + insurance)
• Business-only: 100% of operating costs

VAT on fuel:

• Mixed use: 50% VAT
• Business-only: 100% VAT

Leasing under lump-sum tax (ryczałt)

Under lump-sum tax (ryczałt) you don't deduct costs — so leasing installments, fuel, and service do not reduce your tax.

But you deduct VAT independently — you can deduct 50% or 100% VAT on installments and fuel.

Buy-back (purchase)

After the lease ends you can buy the car. The buy-back is:

• One-time cost (tax scale/flat tax) — buy-back fee is deductible
• VAT: you deduct 50% or 100% (depending on use)
• Ownership: the car becomes yours

After the buy-back you can:

• Sell the car (revenue)
• Use it privately (no longer deductible)
• Enter it as a fixed asset (continue depreciating)

Comparison: leasing vs. cash vs. loan

| Method | PIT costs | VAT | Cash flow | |---|---|---|---| | Operating lease | Installments deductible | 50%/100% | Low installments | | Cash | Depreciation 20%/year | 50%/100% | One-time expense | | Loan | Principal + interest | 50%/100% | Installments with interest |

Pitfalls and most common mistakes

1. No mileage log

If you deduct 100% VAT — you must maintain a detailed mileage log. Without it, the tax office disallows the VAT.

2. The 150 000 zł limit

A car above 150 000 zł — you deduct only proportionally.

3. Leasing under lump-sum tax (ryczałt)

Leasing installments don't reduce tax under lump-sum tax (ryczałt). You only deduct VAT.

4. Buy-back as revenue

If after the buy-back you sell the car for more — the difference is business revenue.

5. Fuel without a receipt

Fiscal receipts for fuel are mandatory. Without them — no VAT and no cost deduction.

FAQ

Can I lease a car under lump-sum tax (ryczałt)?

Yes, but the installments don't reduce tax. You only deduct VAT (50%/100%).

Do I have to keep a mileage log?

Yes, if you deduct 100% VAT. At 50% VAT the log is not mandatory, but recommended.

Is the lease buy-back a deductible cost?

Yes, under the tax scale/flat tax the buy-back fee is a one-time cost.

Can I deduct 100% VAT without a mileage log?

No. Without a detailed mileage log — maximum 50% VAT.

Does the 150 000 zł limit apply to leasing?

Yes. Under operating lease, the limit applies to the car value set in the lease agreement.

Need help with leasing?

I provide bookkeeping for sole proprietorships (JDG) with leasing — mileage logs, VAT 50%/100%, buy-back, depreciation. From 49 zł + VAT per month.

Email [email protected] or visit oxyok.com/pl.

Note: Operating lease: VAT 50% (mixed use) or 100% (business-only). 150 000 zł limit. Mileage log mandatory at 100% VAT. Under lump-sum tax (ryczałt), costs are not deductible. Before making a decision, consult an accountant.