Confirmation that Crew vans should not be subject to excise duty

The case concerned the excise taxation of crew vans intended for the transport of passengers and good (Double Cab in VAN). Tax authorities in Poland argued that such cars are primarily passenger cars and should be subject to excise duty. This interpretation of the regulations was widely accepted by tax authorities in Poland and led to automotive companies having to pay excise tax on all such vehicles.

The MJDDP team appealed against such decisions of the tax authorities. It presented a comprehensive argument based on the technical specificity of these vehicles and their basic purpose. This analysis showed that cars are not passenger cars and should not be subject to excise duty. The team also showed that taxing such cars would be inconsistent with the objectives of the act, which provides that excise duty should not apply to “non-luxury” cars.

In its final and binding rulings, the Provincial Administrative Court (WSA) in Warsaw, following the taxpayer’s arguments, found that tax authorities should not apply an expansive interpretation of the term “passenger cars”. The court confirmed that such vehicles (VANs) are primarily used to transport goods and equipment. The transport function is not crucial.

Crew vans – Court Ruling on Excise Duty Exemption for Multifunctional Vehicles

The WSA explicitly ruled that excise duty should only apply to multifunctional vehicles where there is no doubt that their primary purpose is passenger transport. Furthermore, the court noted that historically, excise duty was intended for luxury goods, which certainly do not include vehicles designed for cargo transport, even if they have two rows of seats.

Although the Director of the National Tax Information initially lodged a cassation appeal against the rulings, they later withdrew it and subsequently issued a decision refusing to provide binding excise information (WIA). This effectively confirmed the taxpayer’s position that such vehicles should be exempt from excise duty.

These decisions may be of key importance for the entire automotive market in Poland. They confirm that such cars should not be subject to excise tax at all.

Taxpayers who previously had to pay excise duty on multifunctional vehicles with both passenger and cargo capabilities may now seek a refund. These rulings will not only impact past excise settlements but also current ones. Taxpayers who are currently paying excise duty on van-type vehicles may consider applying for their own WIA, which would safeguard them in case of potential tax audits.

Tax representative were: Tomasz Michalik (VAT), Katarzyna Trzaska-Matusiak (VAT) i Jakub Warnieło (Litigation) i Agnieszka Kisielewska.