How to Deduct VAT on Fuel for Sole Proprietorships (JDG) in Poland (2026)
Deducting VAT on fuel for sole proprietorships (JDG) in 2026 in Poland. 50% or 100%, fiscal receipts, limits, mixed use. A practical guide with examples.
Fueling up a company car and want to deduct VAT? It depends on whether you use the car privately. Mixed use = 50% VAT. Business only = 100%. But beware — you need fiscal receipts, not just invoices.
In this guide, I explain the rules for deducting VAT on fuel for sole proprietorships (JDG) in Poland in 2026.
VAT on Fuel — 50% or 100%?
Fuel VAT deduction — 50% or 100%?
The VAT deduction on fuel depends on how the vehicle is used: 50% for mixed use or 100% for business-only use.
Vehicle used for both business and private purposes. Default rate for passenger cars.
Vehicle used exclusively for business purposes. Requires a vehicle mileage log (kilometers).
Purchase document
Up to 450 zł gross — a receipt with the buyer's NIP is sufficient.
Above 450 zł gross — a VAT invoice is required.
With mixed use — you deduct 75% of the fuel value as a cost.
With business-only use — you deduct 100% of the fuel cost.
Example: 1,000 zł gross refueling
Breakdown of VAT and PIT with mixed use (50% VAT, 75% PIT costs).
| Item | Amount | VAT deduct. | PIT cost |
|---|---|---|---|
| Net fuel value | 813,01 zł | — | — |
| VAT amount (23%) | 186,99 zł | — | — |
| Gross amount | 1000,00 zł | — | — |
| Deductible VAT (50%) | — | 93,50 zł | — |
| PIT cost (75%) | — | — | 609,76 zł |
Key rule: To deduct 100% VAT on fuel, you must keep a vehicle mileage log (kilometer counter). Without it, the 50% rate (mixed use) applies automatically.
Refueling for your business? Let's check how much you can deduct.
Let's calculate →Based on Art. 86 sec. 1 and Art. 86a of the VAT Act. Receipt limit 450 zł gross: Art. 86a sec. 6 pt. 1. Vehicle mileage log: Ministry of Finance regulation.
Mixed Use (50% VAT)
If you use the car for both business and private purposes — you deduct 50% VAT on fuel.
Requirement: A mileage log is not mandatory, but recommended.
Business Only (100% VAT)
If you use the car only for business purposes — you deduct 100% VAT.
Requirement: A detailed mileage log (time, route, purpose, kilometers). Plus registration with the tax office (US) as a "business-only vehicle."
Receipt or Invoice?
To deduct VAT on fuel, you need:
- Fiscal receipt with NIP — sufficient for VAT deduction up to 450 zł (the limit is 450 zł gross per transaction)
- Invoice — for deduction above 450 zł gross
Receipt with NIP:
- At the gas station, you provide your NIP before payment
- You receive a receipt with your NIP
- The receipt is an accounting document (like an invoice)
Receipt limit:
- Up to 450 zł gross — a receipt with NIP is sufficient
- Above 450 zł — you need an invoice
Fuel Costs (PIT)
On the tax scale and flat tax, you deduct fuel costs:
- Mixed use: 75% of operating costs (fuel + service + insurance)
- Business only: 100% of operating costs
On lump-sum tax (ryczałt):
You do not deduct fuel costs (no cost deduction on lump-sum tax). But you do deduct VAT (50% or 100%).
Deduction Example
Scenario: 1,000 zł of fuel (net 813 zł + VAT 187 zł)
Mixed use (50%):
- VAT deduction: 187 × 50% = 93.50 zł
- PIT cost: 813 × 75% = 609.75 zł
Business only (100%):
- VAT deduction: 187 zł
- PIT cost: 813 zł
Electric and Hybrid Vehicles
Electric cars are subject to additional reliefs:
- Depreciation: limit of 225,000 zł (normally 150,000 zł)
- VAT: 100% deduction (even with mixed use, but this is changing)
- Excise duty: exempt
Most Common Mistakes
1. No Receipt with NIP
Without a receipt with NIP (or invoice) — no VAT deduction.
2. Deducting 100% Without a Mileage Log
Without a detailed log — max 50% VAT.
3. Forgetting the 75% PIT Cost Rule
With mixed use, you deduct 75% of PIT costs, not 100%.
4. Thinking You Can Deduct Fuel Costs on Lump-Sum Tax (Ryczałt)
On lump-sum tax (ryczałt), you deduct VAT but not PIT costs (fuel).
FAQ
Do I need an invoice for fuel?
Up to 450 zł gross — a receipt with NIP is sufficient. Above 450 zł — an invoice.
Can I deduct VAT on fuel on lump-sum tax (ryczałt)?
Yes. You deduct VAT regardless of lump-sum tax (50% or 100%).
Do I have to keep a mileage log?
At 50% VAT — not mandatory (but recommended). At 100% VAT — mandatory.
Do electric cars get 100% VAT?
Electric cars may be subject to additional reliefs, but 100% VAT requires a mileage log like any other car.
Need Help with VAT on Fuel?
I run sole proprietorship (JDG) accounting with full VAT handling — fuel, mileage log, 50%/100%. From 49 zł + VAT per month.
Reply to [email protected] or visit oxyok.com/pl.
Note: VAT on fuel: 50% (mixed) or 100% (business only). Receipt with NIP up to 450 zł gross. On lump-sum tax (ryczałt), you deduct VAT but not PIT costs. Before making a decision, consult an accountant.
Questions about accounting?
I run accounting for sole proprietors from 49 zł + VAT per month.
Get in touch