Depreciation deductions will be tax

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Importantly, their incurrence must be economically justified. Referring this to the issue of purchasing a company bicycle, if the entrepreneur intends to use it for purposes related to his business and is able to indicate the economic justification of such an expense, then nothing prevents the bicycle from being a tax-deductible expense. Moreover, it does not have to be the only means of transport in the company - it can be used interchangeably with a passenger car. This position has been confirmed many times in numerous tax interpretations e.
  
Company bicycle – fixed asset or current cost The method of recording the purchase of a company bicycle in the KPiR depends on several factors. First of all, on its value and expected period of use - if the entrepreneur phone number list intends to use the bicycle for more than a year and its value exceeds PLN , net in the case of active VAT taxpayers and gross for those who benefit from exemption from this tax , then it will be it constitutes a fixed asset included in group KŚT and depreciated at the rate of % per annum . deductible costs . Importantly, this option can also be used by entrepreneurs who purchased a bicycle worth less than the indicated amount.



The second option for bicycles worth less than PLN , is to include such an expense directly in tax deductible costs in col. of the KPiR at the time of issuing the invoice. Tip! Small taxpayers can make one-off depreciation of a bicycle even if its value exceeds PLN , . You can read more about this here . Purchasing a bicycle and VAT If the entrepreneur runs a business subject to VAT and the purchase of a bicycle is related to this activity, he has the right to settle % of the VAT on the purchase invoice. Summary Entrepreneurs have the option of settling the bicycle, provided that it is related to their business.