When buying, selling and owning a vehicle, in Poland, as in other countries, the relevant taxes are paid. A brief description of these transport-related taxes for individuals further.

The contract for the purchase of a vehicle by an individual is subject to taxation in the amount of 2% of its value. The tax refers to taxes on civil law transactions (podatek od czynności cywilnoprawnych, PCC). The buyer of the car files a PCC-3 tax return (PCC-4 if there are multiple buyers in joint/shared ownership). The PCC-3 declaration is submitted and the tax is paid within 14 days from the date of signing the vehicle purchase agreement. When filing a PCC-4 declaration, it is filed and the tax is paid before the 7th day of the month following the month in which such an agreement is signed.

It should be noted that the tax base is the market value of the vehicle, even if a different price is specified in the purchase agreement.

The contract for the sale of a car is not subject to tax (PCC) if the transaction is subject to VAT (including tax exemption) or if the subject of sale is a vehicle located abroad and one of the conditions is met: the contract was concluded abroad and / or the buyer does not has a place of residence or registered office in Poland.

Diplomatic missions, international organizations, public, charitable and volunteer organizations are exempt from the tax. Persons with disabilities are exempt from the tax.

The sale of movable property is not taxed if the tax base does not exceed PLN 1000.

The tax can be refunded if the purchase of the vehicle has been canceled/did not take place.

Read more about paying tax when buying a vehicle at the link of the state tax website.

When a car is sold by an individual, income is declared and subject to personal income tax if it was privately owned and was sold within 6 months from the date of its purchase. Sales proceeds after six months are not subject to income tax.

The tax base is income, i.e. the difference between the sales proceeds and the purchase price. The resulting difference can be further reduced by the costs that were associated with ownership.

Income from the sale of a car is combined with other income that is taxed in accordance with the tax scale, for example, income from work, pension, etc. If the income from the sale of the car, together with other income, did not exceed PLN 120,000 in the tax year, the rate of 12% is applied and the tax reduction amount of PLN 3600 is deducted in 2023. If the income from the sale of a car exceeds PLN 120,000, then a tax in the amount of PLN 10,800 is payable and 32% of the amount above PLN 120,000.

The income received is reported in the PIT-36 annual tax return.

Detailed information on income tax on the sale of a vehicle at the link of the state tax website.

Vehicle ownership tax for individuals is not payable for cars and trucks with a permissible weight of up to 3.5 tons. Vehicle tax is one of the types of local taxes and fees for which appropriate rates apply.