Indirect taxes in automotive industry – a compliance perspective

Olga Palczewska-Wielińska, Monika Junyszek
Rzeczpospolita

Ensuring compliance with respect to indirect taxes is a tall order in the automotive industry. Automotive companies must follow not only the VAT Act, but also – if they sell passenger cars – the various excise duty regulations. The question of whether and how much excise is payable affects VAT because the amount of excise is added to the taxable amount for VAT purposes. However, when it comes to practice, it is not always obvious how to correctly quantify the tax liability here and uncertainties appear already when you try to classify a vehicle for excise duty purposes.