Electric vehicle surcharges for businesses – PLN 125 limit – net amount, threshold ONLY for passenger cars [updated] • ELECTROMAGNETICS

Yesterday, we detailed a draft regulation regarding the subsidization of electric vehicles for companies, organizations and institutions under the Low Emissions Transport Fund. However, we have not developed the question of the purchase price of such a car, and this leads to an important consequence - the threshold for subsidies for companies is set higher than for individuals.

Table of contents

• Electric vehicle subsidies in 2019: companies with a net threshold, individuals with a gross threshold
  • • The surcharge threshold is ONLY for passenger cars of category M1.
  • When will the regulation go into effect?

Recall: the draft resolution of July 2019 dealt with individuals, that is, ordinary citizens. Such people pay VAT by nature, so the information about the “purchase price” contained in the draft looked rather surprising and raised some doubts:

> Purchase price and purchase price, i.e. additional payment of 125 thousand or 154 thousand PLN?

In the case of companies or individual entrepreneurs, the situation is different. But let's start by getting acquainted with the draft resolution (see HERE):

§ 53. Costs eligible to support the purchase of new vehicles and ships fueled by liquid biofuels, compressed natural gas (CNG) or liquefied natural gas (LNG), including those based on biomethane or hydrogen, or using electricity as an engine, include:

1) purchase price:

a) a new electric car,

b) a new vehicle that runs on CNG,

c) a new vehicle running on CNG,

d) a new hydrogen car,

e) a new vehicle of category L specified in Appendix 2 to the Law of June 20, 1997 on road traffic, powered by electricity.

(f) a new vessel fueled by liquid biofuels, compressed natural gas (CNG) or liquefied natural gas (LNG), including biomethane, or hydrogen, or electricity;

Paragraph 53, paragraph 1 tells us very specifically that the purchase price is an acceptable value. The problem is that for entrepreneurs, “purchase price” and “purchase price” are not the same thing. We are reminded of this in point 2 of this paragraph:

2) expenses for tax on goods and services related to the implementation of the project, if the person applying for support cannot reduce the amount of tax due by the amount of input tax, within the meaning of the provisions of the Value Added Regulation. Tax Law.

Translated into Polish: if we are talking about an individual entrepreneur, company or other registered VAT payer, then the cost of support is a net price. The PLN 36 surcharge remains unchanged, but the PLN 125 threshold should be considered as the net price threshold. We add that this only applies to passenger cars, because vans do not have a price threshold..

> Supplements for electric vehicles 2019: up to PLN 36 per car, up to PLN 000 per motorcycle / moped

It means that theoretically the company can buy an electric car worth up to PLN 125 * 000 = PLN 153 gross... However, this reasoning is somewhat simplified, since it is not always possible to deduct all VAT. It is worth discussing the details of VAT withholding on a vehicle with your accountants.

The situation is much simpler (and less favorable) for companies that are not VAT payers. For them, the PLN 125 limit is simply the gross amount that was billed.

The surcharge threshold is ONLY for passenger cars of category M1.

Another important point: the threshold of 125 PLN that we describe applies only to passenger cars. Such the restriction does not apply to vans, large buses and trucks - here only the amount of the surcharge is limited, but not the purchase price of the vehicle.

When will the regulation go into effect?

According to the content of the resolution, it comes into force after 14 days from the date of publication. Of course, the day of the announcement will be known when the decree is ready. Every entrepreneur, company and organization applying for a grant will be listed on the public list along with an assessment of their application. And now there are three important caveats, which are also included in the draft regulation:

• inclusion of a company in the list does not mean that the entrepreneur / organization will receive a subsidy (paragraph 3, clause 11),
• the surcharge for vehicles used for the carriage of goods by road requires separate accounting (paragraph 14, point 2),
• subsidies will be provided when funds are available for them.

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