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VAT Deduction Ban for Combustion Engine Cars. Nothing in the EC Proposal Agrees.

The European Commission is proposing to limit the right to deduct VAT on passenger cars. It treats the tax as an instrument of climate and environmental policy. This is the most profound interference in the VAT system since the adoption of Directive 112, writes Radosław Żuk, tax advisor at Żuk Pośpiech Law Firm, exclusively for Business Insider Polska.
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The European Commission is proposing to limit the right to deduct VAT on passenger cars. It treats the tax as an instrument of climate and environmental policy. This is the most profound interference in the VAT system since the adoption of Directive 112, writes Radosław Żuk, tax advisor at Żuk Pośpiech Law Firm, exclusively for Business Insider Polska.

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Business Insider (Poland) broke the news on Sunday, September 20, 2026.
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