The CPN package lowers fuel prices, but entrepreneurs pay more taxes
The CPN package (“Fuel Prices Lower”) means lower VAT (8% instead of 23%) and a reduction in excise duty (by PLN 0.28 on diesel oil and PLN 0.29 on gasoline). For consumers, i.e. people who do not run a business, this is obviously a beneficial change.
As we have already informed, in the case of entrepreneurs the situation is more complicated. We explain this in the calculations below, prepared by Izabela Leśniewska, a tax advisor from Alo-2.
— The conclusion is that entrepreneurs will pay less for fuel at the station, but later they will pay more VAT to the tax office (when settling monthly VAT). Accountants can therefore expect questions from entrepreneurs: “Why do I have so much VAT to pay?” – says Izabela Leśniewska.
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How entrepreneurs settle fuel taxes
Piotr Juszczyk, chief tax advisor of InFakt, previously explained the impact of the VAT and excise tax reduction on fuel on entrepreneurs using the example of a bakery owner who uses a delivery vehicle only for business purposes, and therefore has the right to deduct the entire VAT on fuel.
— If an entrepreneur spends PLN 1,000 net on fuel per month, then at a rate of 23 percent pays PLN 1,230 gross and deducts PLN 230 VAT. After a reduction to 8%. will pay PLN 1,080 gross and will deduct PLN 80 VAT. Next, the entrepreneur's real cost will be PLN 1,000 – explains the tax advisor. VAT for entrepreneurs should be neutral.
Piotr Juszczyk adds that For entrepreneurs, the most important thing is the net price of fuel, which changes mainly due to excise duty and market conditions. In the CPN package, the price of excise duty is also expected to drop. — In practice, an entrepreneur who spends PLN 1,000 net on fuel per month will gain approximately PLN 50. The net cost of fuel will be approximately PLN 950, says Juszczyk. In practice, as calculations show, the entire profit of the entrepreneur is exclusively the reduction in excise duty. VAT remains neutral.
WITHVAT on fuel also has consequences for income tax. As Izabela Leśniewska explains, If we take into account all tax settlements, it turns out that although entrepreneurs will pay less at the station, they will ultimately pay the entire profit to the tax office. Lower VAT means, among others: lower costs of obtaining revenues. — If the entrepreneur has the right to deduct 100%. VAT on fuel (I use the car only for business purposes), the tax expense is the net price – explains Izabela Leśniewska.
What taxes do entrepreneurs settle? This is what the calculations look like
The following calculations were prepared by Izabela Leśniewska from Alo-2.
VAT reduction from 23%. at 8 percent means that the entrepreneur pays less for fuel at the station. When purchasing 100 liters of diesel, the difference is PLN 476.
| Parameter | VAT 23 percent | VAT 8 percent |
|---|---|---|
|
GROSS price (per liter) [zł] |
8.79 |
7.60 |
|
Number of liters (refueling) |
100 |
100 |
|
Refueling monthly |
4 |
4 |
|
VAT deduction (50% or 100%) |
100 percent |
100 percent |
|
Payments at the station |
PLN 3,516 |
PLN 3,040 |
|
VAT to be deducted |
656.00 |
224.00 |
|
VAT not deducted (BUY cost) |
0.00 |
0.00 |
An entrepreneur can deduct VAT less.
| VAT on total refueling | ||
|---|---|---|
| VAT 23 percent | VAT 8 percent | |
| VAT to be deducted |
656.00 |
224.00 |
| VAT not deducted (BUY cost) |
0.00 |
0.00 |
This is how much the entrepreneur will pay in taxes and contributions, depending on the form of PIT/CIT taxation, when the excise tax is reduced.
| Form of taxation | VAT 23 percent | VAT 8 percent |
|---|---|---|
|
CIT 9 percent (small taxpayer) |
PLN 257.40 |
PLN 253.44 |
|
CIT 19 percent |
PLN 543.40 |
PLN 535.04 |
|
PIT Scale 12 percent (+ZUS and health insurance contribution 9%). |
PLN 600.60 |
PLN 591.36 |
|
PIT Scale 32 percent (+ZUS and health insurance premium. 9%) |
PLN 1,172.60 |
PLN 1,154.56 |
|
Linear PIT 19 percent (+ZUS and health insurance 4.9%) |
PLN 683.54 |
PLN 673.02 |
The table below shows how much money is left in the entrepreneur's pocket after taxes. At 8 percent VAT amounts are lower due to the higher taxes that the entrepreneur must pay to the tax office.
| Form of taxation | VAT 23 percent | VAT 8 percent | Difference |
|---|---|---|---|
|
CIT 9 percent (small taxpayer) |
PLN 2,602.60 |
PLN 2,562.56 |
– PLN 40.04 |
|
CIT 19 percent |
PLN 2,316.60 |
PLN 2,280.96 |
– PLN 35.64 |
|
PIT Scale 12 percent (+ZUS and health insurance 9%). |
PLN 2,259.40 |
PLN 2,224.64 |
– PLN 34.76 |
|
PIT Scale 32 percent (+ZUS and health insurance 9%). |
PLN 1,687.40 |
PLN 1,661.44 |
– PLN 25.96 |
|
Linear PIT 19 percent (+ZUS and health insurance 4.9%) |
PLN 2,176.46 |
PLN 2,142.98 |
– PLN 33.48 |
In the analyzed example, the gross price decreased by a little more than 15%. (a 15% reduction from PLN 8.79 per liter is PLN 7.64, and the minimum price was set on March 31, 2026 at PLN 7.60/l), hence the differences in taxes and in the entrepreneur's finances.
Author: Łukasz Zalewski, journalist of the Law section, Business Insider Polska
