Short answer
In an operating lease the leasing company (lessor) depreciates the asset, your down payment and net instalments are tax-deductible, and VAT is added to each payment. In a finance lease you depreciate the asset yourself, depreciation and the interest part of instalments are tax-deductible, and VAT on the full value is charged at the start. For passenger cars, VAT is deductible at 50% or 100% and the tax-deductible part of the car's value is capped at PLN 100,000, 150,000 or 225,000 depending on CO2 emissions.
This is a short summary for managers and owners who do not read Polish. Each section links to the detailed Polish article. Tax treatment depends on your situation - confirm it with your accountant or tax adviser.
Looking for business leasing in Poland?
Describe the asset and your company - we will pass the inquiry to leasing companies that finance such assets.
Income tax
Operating vs finance lease for tax
| Item | Operating lease | Finance lease |
|---|---|---|
| Who depreciates the asset | Leasing company | You (the lessee) |
| Tax-deductible for you | Down payment and net instalments | Depreciation and the interest part of instalments |
| VAT | Added to the down payment and each instalment | Charged on the full value at the start |
| Minimum term | At least 40% of the standard depreciation period (24 months for a car); at least 5 years for real estate | No minimum term for tax purposes |
The minimum term comes from art. 17b of the CIT Act and art. 23b of the PIT Act. If an operating lease ends early, before that minimum, the tax treatment may change. Details in Polish: operating lease as a business cost and operating vs finance lease.
Under the lump-sum tax on recorded revenue (ryczałt), tax is charged on revenue without deducting costs, so leasing instalments do not reduce income tax - only VAT can be deducted by an active VAT payer.
VAT
VAT on leased cars: 50% or 100%
- Mixed use (business and private) 50% of VAT deductible
- Business use only 100% deductible, with a VAT-26 notification and a mileage log
- VAT-26 deadline by the 25th day of the month following the month of the first expense
- Running costs of a car in mixed use 75% tax-deductible for income tax
These rules come from art. 86a of the VAT Act and art. 23 sec. 1 item 46a of the PIT Act (art. 16 sec. 1 item 51 of the CIT Act). Vehicles which, according to their documents, are not passenger cars - e.g. some vans with an N1 type approval - may qualify for a full VAT deduction without a mileage log. More in Polish: 100% VAT deduction and VAT-26.
Cars
Car cost limits from 2026
Since 1 January 2026 the part of leasing payments that repays the value of a passenger car is tax-deductible only up to PLN 225,000 for electric and hydrogen cars, PLN 150,000 for cars emitting less than 50 g CO2/km and PLN 100,000 for other cars. Interest remains fully tax-deductible, and the buyout payment is not subject to the limit. The ratio and an example are explained in car leasing cost limits.
KSeF
E-invoices in KSeF
From 1 February 2026 all active VAT payers in Poland receive invoices, including leasing invoices, through the National e-Invoice System (KSeF). The obligation to issue invoices in KSeF started on 1 February 2026 for the largest businesses and on 1 April 2026 for the others, with transitional exceptions for the smallest. More in Polish: KSeF and leasing invoices.
Read more
See also
Leasing market in Poland
Leasing market in Poland in figures: PLN 119.5 bn financed in 2025 and PLN 92.9 bn in the first three quarters of 2026, by segment, according to ZPL data.Our principles
How the service works: who pays us, how inquiries are passed to leasing companies, what data we collect and how content is prepared and verified.Glossary
Glossary of Polish leasing terms in English: opłata wstępna, wykup, korzystający, finansujący, OWU, VAT-26, limit kosztów and more, with short explanations.For partners
Refer clients who need leasing in Poland. Referral protection for 3 months, a share of our revenue under a partner agreement, free for the client.
Questions
Frequently asked questions
Is the down payment tax-deductible at once?
In an operating lease it is usually deducted when paid, although some businesses spread it over the contract term. For passenger cars it is subject to the cost limit.
Does a foreign-owned company pay tax differently?
No. A company registered in Poland follows the same rules regardless of who owns it - see leasing for foreign-owned companies.
Are leasing instalments subject to VAT?
Yes. In an operating lease, VAT at the rate applicable to the asset (usually 23%) is added to each instalment. A business that is VAT-exempt cannot deduct it, so it pays gross instalments.