An operating lease and a financial lease of a passenger car differ in who depreciates the car, when VAT is paid and what part of the instalment goes into costs. In 2026, both forms are subject to the same value limits: PLN 100,000 for combustion cars with CO2 emissions of at least 50 g/km, PLN 150,000 for lower emissions, and PLN 225,000 for electric cars. Below we compare both variants and show how to calculate the deductible part of the instalment and what happens after the buyout.
Operating lease in the PIT Act
Article 23b of the PIT Act sets out the conditions under which lease payments are a cost of the user, while the item is depreciated by the financier:
- the contract is concluded for a fixed term equal to at least 40% of the normative depreciation period — for a passenger car (rate 20%, i.e. 5 years) this means at least 24 months;
- the sum of the payments set out in the contract, net of VAT, corresponds at least to the initial value of the car.
The lease instalment is then a cost in full — subject to the limit for passenger cars described below. The initial fee is part of the lease payments and is subject to the same rules.
Financial lease
In a financial lease (Article 23f), the car is depreciated by the user, and the part of the instalment corresponding to the repayment of the car's value is not a cost. The cost is the interest part and the depreciation write-offs — the latter with the car value limit. The contract must expressly provide that write-offs are made by the user. If the contract does not specify what part of each instalment is the repayment of value, this is determined pro rata to the contract term.
| Criterion | Operating | Financial |
|---|---|---|
| Who depreciates | lessor | entrepreneur |
| Cost in PIT | instalment (capital part with limit) + running costs | interest + depreciation with limit + running costs |
| VAT | added to each instalment | the whole charged at the start of the contract |
| Ownership after contract | buyout at the price in the contract (optional) | passes to the user |
| Minimum term | 24 months for a passenger car | fixed term, no minimum |
VAT: instalment by instalment or upfront
An operating lease is, for VAT, a service — the lessor adds VAT to each instalment. The VAT Act, however, treats as a supply of goods the handover of an item under a lease contract concluded for a fixed term, where the contract provides for the transfer of ownership with the payment of the last instalment. In a financial lease, VAT on the whole value of the car therefore appears on the invoice at the start of the contract.
In both cases, under mixed use, 50% of VAT is deducted, and 100% only when the car serves exclusively business activity, which requires a mileage record and a VAT-26 notification. The difference concerns liquidity: in a financial lease you have to finance VAT on the whole amount at the start, and the deduction (e.g. half) takes place in a single period. A broader discussion of VAT deductions on cars is in the article on VAT in Poland.
Limit for operating lease instalments
Article 23(1)(47a) of the PIT Act excludes from costs the part of lease payments that exceeds the proportion of the limit to the value of the car. In a lease the restriction concerns only the part of the fee which is a repayment of the car's value — interest and other elements of the instalment are not covered. Insurance premiums are excluded from this limit and have their own PLN 150,000 cap.
Example
An entrepreneur on the flat tax takes in 2026 an operating lease of a combustion car (emissions 140 g/km) worth PLN 200,000 net. The limit is PLN 100,000, so the cost is 100,000 / 200,000 = 50% of the capital part of each instalment. If the monthly capital part is PLN 3,000 and the interest part PLN 700, the cost is PLN 1,500 + PLN 700 = PLN 2,200 per month. The same car in the electric version would fit within the PLN 225,000 limit — the whole capital part would be a cost.
Under mixed use, an additional 75% restriction on car usage costs also applies. If the instalment is calculated to also cover running costs (e.g. service), this restriction applies to that part of the fee — for a specific contract it is worth calculating both restrictions together.
Buyout and later sale
At the end of an operating lease, the car can be bought out into the business or into private assets. The PIT Act counts as business revenue also the sale of movable items used in the business under an operating lease. The same six-year period applies as for fixed assets: if the car was withdrawn from the business and six years have not passed from the first day of the following month until the sale, the revenue is business revenue, even when it is sold by a private person.
Such revenue, however, does not increase the health contribution — the Act on healthcare services excludes it from the base, and on the scale and flat tax allows it to be voluntarily included in the annual return.
And long-term rental?
Long-term rental works for tax purposes similarly to an operating lease: the rent is a cost, and the limit from Article 23(1)(47a) also covers rental and lease contracts. For contracts concluded for less than 6 months, the value of the car for proportion calculation is the value adopted for insurance purposes. In VAT the same 50% or 100% rules apply as for leasing. The difference is mainly practical: in rental there is usually no buyout, and the price often includes service and insurance.
Ryczałt and leasing
Under ryczałt, lease instalments do not reduce the tax, as there are no costs. What matters then is mainly VAT (for active VAT payers) and financing. On a later sale of a car used under a lease, the revenue is subject to ryczałt at 3%.
How to choose
- Form of taxation. Under ryczałt, the advantage of an operating lease in PIT disappears.
- Value and emissions of the car. For a combustion car above PLN 100,000, part of the instalments will not be a cost in either variant; for electric cars the limit is more than twice as high.
- Liquidity. A financial lease requires financing the whole VAT at the start.
- Plans after the contract. If the car is to stay in the firm for years, a financial lease gives ownership immediately after repayment; an operating lease offers a buyout option or return.
- Term. An operating lease of a passenger car cannot be shorter than 24 months.
How Good Balance can help
We calculate the deductible part of the instalments taking the limits into account, settle VAT on leasing and watch the consequences of the buyout and sale of the car. The service for companies is described on the full accounting page, and for sole proprietorships — on simplified accounting.