The VAT deduction cap is extended until 31 December 2028.
The EU Council issued Implementing Decision (EU) 2025/1986 on 22 September 2025, permitting Poland to extend its current VAT deduction restrictions on motorised road vehicles.
This decision allows Poland to continue limiting VAT deductions to 50% for purchases, imports, intra-Community acquisitions, hires, or leases of vehicles that are not exclusively used for business purposes.
The application of the special measures beyond 31 December 2025 will have a negligible effect on the overall amount of the tax revenue that Poland collects at the stage of final consumption and will not adversely affect the Union’s own resources accruing from VAT. It is therefore appropriate to extend the authorisation set out in Implementing Decision 2013/805/EU.
Therefore, as per Implementing Decision (EU) 2025/1986, Poland is authorised to continue to apply the special measures until 31 December 2028.
