An entrepreneur applied for an interpretation, conducting a sole proprietorship, who was in the middle of a divorce. He has a property with his wife. The spouses, before divorce, signed a notary's agreement on the division of property. According to her, the wife will receive a passenger car that was in her husband's activity, but not for free, and will have to pay for him. The de facto was about sales. Only that the wife will pay less than the market value of the car. The taxpayer pointed out that when buying, he deducted 50 percent. VAT. In connection with the sale of a vehicle, there was a problem whether VAT must be counted and paid to the tax office from the market value, or from the price paid by the wife.
We also explain whether it can be recovered at 50 percent. VAT.
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Which is the basis for VAT taxation when selling a car
Pursuant to art. 29a para. 1 of the VAT Act, the basis for VAT taxation is everything that is the payment that the delivery of goods or the service provider has received or is to receive from the sale from the buyer, service recipient or a third party, including received subsidies, subsidies and other subsidies of a similar nature having a direct impact on the price of goods delivered or services provided by the taxpayer.
The entrepreneur, however, was not sure what the tax base should take when handing this car to his wife from the company's fixed funds. He asked the Director of the National Treasury Information in the application for interpretation. The entrepreneur himself was inclined to the position that he should take the amount of payment obtained from his wife as the tax base.
What VAT you have to pay for the sale of the car
Director of the National Treasury Information in an individual interpretation of April 17, 2025 (0112-KDIL1-3.4012.32.2025.2.AKR) agreed with the entrepreneur.
He confirmed that in accordance with art. 29a para. 1 of the VAT Act, the tax base is everything that is the payment, which the supplier of the delivery of goods has received or is to receive from the sale from the buyer. Pursuant to art. 29a para. 6 of the VAT Act, the tax base also includes taxes, duties, fees and other receivables of a similar nature, except for the amount of tax, as well as additional costs, such as commissions, the costs of packaging, transport and insurance, charged by the supplier from the buyer.
The tax base does not include the amounts:
1) constituting a reduction in prices in the form of a discount for earlier payment;
2) the buyer granted abbreviation and price reductions, taken into account at the time of sale;
3) received from the buyer as a refund of documented expenses incurred on behalf of and to the buyer and temporarily captured by the taxpayer in his records for tax (Article 29a (7) of the VAT Act).
The director of KIS explained that the provisions show that the tax base is the remuneration actually received (or which is to be received) in a specific case.
In the case of an entrepreneur, the applicant, the tax base is everything that is payment for the transfer of the car to the wife. Simply put, This is the amount that the entrepreneur received from his wife for handing over the car.
Let us add that in a situation if the entrepreneur was selling a passenger car from a foreign person's activities, the tax base will also be the price he will get with the exception of VAT.
The situation, however, is different with determining the tax base in the case of buying a car from leasing – in this case the tax base should be the market value of the car, not the purchase amount. We explained this in the article: Did the car after buying from leasing leave in the company? He will have a problem with VAT.
See also: Car in the company. Change of purpose for mixed use. What about VAT?
What about unpaid VAT from the car?
Let us also note that in the case of the sale of a car from which the taxpayer deducted only 50 percent when buying. VAT, there is a possibility of correction of unpaid VAT. The point is that when purchasing a car, the taxpayer deducted only 50 percent. input tax. However, when sales, you have to pay 100 percent. VAT at a rate of 23 percent Therefore, the VAT Act allows in some situations to correct the input tax so that taxpayers are not lossy (in fact the point is that there is no double taxation).
What cases are it about? Correction of unsolvable VAT is possible if the value of the vehicle sold does not exceed 15,000. PLN and the transaction takes place within 12 months of purchasing the vehicle or redemption from leasing.
If the taxpayer sells the vehicle a few years after the purchase or at a lower price (below PLN 15,000) This cannot correct unpaid VAT.
Individual interpretation of the Director of the National Treasury Information of April 17, 2025 (reference number 0112-KDIL1-3.4012.32.2025.2.AKR).
