Are you deducting 50% or 100% VAT on your business vehicle?
Vehicle mileage register and full VAT deduction (VAT-26)
Without proper mileage records, Polish law only allows deducting 50% VAT on business vehicle costs. Learn how to maintain documentation supporting full VAT deduction under VAT-26.
50% vs 100% VAT deduction
How much VAT you can deduct depends on how you use the vehicle.
Default — vehicle used for business and private purposes
- Vehicle purchase or lease
- Fuel
- Service and repairs
- Insurance
Vehicle used exclusively for business purposes
- Vehicle purchase or lease
- Fuel
- Service and repairs
- Insurance
To support 100% VAT deduction, you must document exclusive business use and meet all three VAT-26 requirements.
Three requirements for full VAT deduction
To deduct 100% VAT on a business vehicle, you must meet ALL three conditions simultaneously:
VAT-26 Filing
One-time form filed with the tax office declaring exclusive business use of the vehicle.
Vehicle Mileage Log
Ongoing record of every business trip containing required data:
- Trip date and time
- Route (from → to)
- Trip purpose
- Kilometers traveled
- Odometer reading before and after
Internal Usage Policy
Company document defining vehicle usage rules, excluding private use.
Burden of proof is on the company, and tax office can request documentation at any time.
The challenge: keeping records
Manual recording of all trips is time-consuming and error-prone, especially in companies with multiple vehicles and drivers.
Every trip must be documented according to VAT-26 requirements:
- •Date, route, purpose, distance of every trip
- •Odometer reading before and after each trip
- •Storing documentation for 5 years
- •Readiness for verification
Automatic vehicle mileage records
Autokilometry automatically supports record-keeping, helping prepare data needed for VAT-26:
- Automatic recording with date and time
- Exact GPS route with start/end addresses
- Distance in km and trip purpose
- Odometer updated automatically
- PDF/Excel export in tax-office format
- Rejected trips stay on record with the reason, outside your mileage log
- Odometer mismatches flagged for the administrator
Benefits:
- Time savings – recording runs in background
- Minimized errors and no gaps in records
- Data ready to present at any time
Comparison: manual vs automatic records
| Aspect | Manual records | Autokilometry |
|---|---|---|
| Time per entry | 5–10 min / trip | 0 min (automatic) |
| Route accuracy | Approximate | Precise (GPS) |
| Error risk | High | Minimal |
| Odometer | Manual | Updated automatically |
| Audit readiness | Depends on consistency | Always ready |
| Monthly report | 1–2 hours | 2 minutes (export) |
| Entries that don't belong | Crossed out or deleted, no trace | Rejected with a reason, kept in history |
| Corrections | Overwritten | Edit and delete requests approved by an admin |
FAQ about VAT and mileage records
No. VAT-26 declares intent for exclusive use, but mileage records are required during audit.
The vehicle should be treated as mixed-use (50% VAT).
Yes, if it contains all required data and allows export for verification.
5 years from end of tax year.
Yes, every trip by all drivers must be recorded.
The user rejects it with a reason. The trip stays in the history marked as rejected, so you can show what was excluded and why, but it doesn't count towards the mileage log, reports, claims or the odometer.
No. The user sends a deletion request with a reason and the administrator decides. The administrator also sees when a vehicle's odometer doesn't match its trips.
Summary
100% VAT deduction on a business vehicle requires:
- Filing the VAT-26 form
- Maintaining detailed vehicle mileage records
- Having an internal usage policy
Autokilometry supports companies in creating mileage records, facilitating data preparation for VAT-26, without assuming responsibility for the deduction.
This page is for informational purposes and does not constitute legal or tax advice. For tax matters, consult an accountant or tax advisor.
Source: biznes.gov.pl - "Information on motor vehicles used exclusively for business purposes (VAT-26)"