What is Leasing
1) Leasing is a financial instrument where a leasing organization purchases a specific asset (vehicle, production equipment, etc.) and provides it for use in exchange for regular payments. Upon completion of the contract term, a buyout (wykup) is provided - acquisition of the asset at its residual value.
Key entities and terminology:
- Lessor (finansujący) - leasing organization
- Lessee (korzystający) - legal entity or individual entrepreneur
- Opłata wstępna - initial lease payment
- Rata leasingowa - periodic payment
- Wykup - buyout payment at contract completion
- Harmonogram - schedule of lease payments
- Przedmiot leasingu - leasing object (for example, vehicle)
2) What are the types of leasing in Poland and how do they differ
In professional circles, operating and financial leasing are distinguished. From a taxation perspective, the following features exist:
Operating Lease (leasing operacyjny)
Characteristics:
- leasing object remains lessor's property
- lease payments are classified as expenses (including opłata wstępna and raty)
- VAT is charged on payments at the time they occur
Financial Lease (leasing finansowy)
Characteristics:
- the leasing object is recorded in the balance sheet as a fixed asset
- expenses are primarily formed from depreciation charges and interest payments (including specific contract costs)
- VAT is generally accounted for as a one-time payment upon object transfer (depending on contract structure)
Important note: the classification of leasing as operating or financial may differ in accounting and tax records. The determining factors are contract terms and specifics of your situation.
3) VAT in Leasing: Deduction Standards and Application Conditions
3.1. Basic Standard for Passenger Vehicles: 50% VAT
For mixed-use passenger vehicles (commercial and potentially personal purposes), a general rule applies: 50% VAT is deductible on all related expenses, including leasing and operational payments.
3.2. Conditions for 100% VAT Deduction
Full VAT deduction (100%) is permitted under the following circumstances:
- documented use of the vehicle exclusively for business activities with mileage tracking, or
- vehicle design features that eliminate or minimize personal use possibility (specialized transport or specific vehicle categories).
3.3. Procedure for Justifying 100% VAT Deduction
To correctly apply 100% VAT deduction for passenger vehicles, the following is required:
- Internal vehicle usage regulations within the organization
(policies regarding personal use, key issuance procedures, parking regulations, established routes, and other operational aspects). - Vehicle mileage records (mileage tracking for VAT purposes) - journey documentation
Legislation establishes mandatory recording elements: vehicle identification number, calendar dates, trip purpose, route details, mileage, driver identification data, and other parameters. - Vehicle notification to tax authorities (VAT-26 form)
When mileage records are required, information must be submitted to tax authorities by the 25th of the month following initial expenses, no later than the JPK submission deadline.
Late submission results in business-use status being established from the submission month (retrospective application of 100% VAT is excluded).
3.4. Exemptions from mileage record requirements
Certain situations exempt from mileage record obligations (e.g., vehicle resale/commercial rental operations).
4) Tax accounting of leasing expenses in PIT/CIT
4.1. Operating lease
Tax-deductible expenses include:
- · initial payment (upfront fee),
- · lease payments (periodic installments),
- · operational costs (fuel, maintenance, and similar expenses according to established standards).
However, for passenger vehicles, certain limits are imposed, which may result in the exclusion of specific expenses from costs.
4.2. Limits for Passenger Vehicles from January 1, 2026
Starting January 1, 2026, PIT and CIT taxation will introduce differentiated limits based on vehicle type and CO₂ emissions.
Threshold values (PLN):
- 225,000 PLN — for vehicles with electric and hydrogen powertrains.
- 150,000 PLN — for vehicles with internal combustion engines emitting less than 50 g/km CO₂.
- 100,000 PLN — for vehicles with internal combustion engines emitting 50 g/km CO₂ or more.
4.3. Financial Leasing
Standard framework:
- vehicle/asset is recorded as a fixed asset,
- depreciation and interest are included in expenses,
- passenger vehicle value limits are applied through limited expenses (similar to PIT/CIT).
5) Post-lease Purchase and Subsequent Sale: Key Aspects
Upon lease term completion (primarily for vehicles), two options are available:
Option A: Corporate purchase
In this case:.
- · the organization receives an invoice,
- · VAT and expenses are accounted for according to the VAT payer status and operating mode,
- · subsequent sale of the vehicle is classified as a business operation with corresponding tax obligations.
Option B: Individual purchase.
Individual purchase is often used to withdraw the vehicle from business activities. Since 2022, the 6-year term provision must be considered.
6-year Term Provision in PIT (for individuals/sole proprietors)
When withdrawing property previously used in business activities or purchasing it in certain cases, any sale within 6 years is classified as a business-related transaction.
The 6-year period calculation starts from the first day of the month following the property withdrawal/transfer month, with applicable tax consequences until this term expires.
Documentary Support for Accounting of Leasing Operations
For correct and secure lease accounting, the following are required:
- Lease agreement with attachments (specification, purchase conditions).
- Payment schedule (harmonogram).
- Invoices: initial payment, periodic payments, additional commission fees, insurance coverage (OC/AC/NNW) — issuer, recipient, amounts.
- Acceptance-Transfer Act.
- For vehicles requiring 100% VAT deduction: VAT-26 registration confirmation, Vehicle operation regulations, Vehicle mileage records.
- For buyout: Buyout invoice, Ownership type: corporate/private.
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