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Car sales and PIT – how to settle the tax?

  • Writer: Paweł Gorzelec
    Paweł Gorzelec
  • Sep 19
  • 2 min read

The sale of a car that was a fixed asset in a business and was later withdrawn from the business and transferred to private property is subject to special taxation rules. These rules stem directly from the Personal Income Tax Act and differ from the rules applicable to the sale of a car used solely for private purposes.

Sale of a private car


If a car belongs to the property of a natural person who does not conduct business activity, its sale generally does not give rise to tax liability - provided that it takes place after 6 months from the end of the month of purchase.


If the vehicle is sold before this date, taxable income is generated: income = sales revenue – acquisition cost


Such income is accounted for in the annual PIT-36 tax return, filed by April 30 of the following year. Importantly, no advance tax payments are required during the year.


Example: A car purchased in January 2025 for PLN 30,000, sold in March 2025 for PLN 34,000. The income of PLN 4,000 should be reported in the PIT-36 form filed in 2026. Tax according to the scale – 12%.

Sale of a retired car


The situation is different for cars that were used as fixed assets in a business and were transferred to private property. The six-year period is crucial here – if the sale occurs before the six-year period expires, the transaction will be treated as a business sale and taxed according to the rules of the chosen settlement method.


The date the car was purchased or its depreciation rate are irrelevant. What matters is the timing of the retirement and compliance with the six-year grace period.


Example: A car purchased in March 2019, entered into the register in April 2019, withdrawn from operation in July 2024, sold in September 2025. Sales price PLN 35,000. Since less than 6 years have passed since the withdrawal, the income of PLN 35,000 should be taxed as business income.

What does this mean for entrepreneurs?


  • the sale of a private car after 6 months from the purchase is free of PIT,

  • selling a car withdrawn from operation before the expiry of 6 years from the date of withdrawal means that the income must be taxed,

  • After liquidation of the business, we settle such income in PIT-36.

A similar position is confirmed by tax interpretations – including those issued by the director of the National Information System on August 13, 2025.

Legal basis: art. 10 sec. 1 item 8, art. 10 sec. 2 item 3, art. 44 sec. 1, art. 45 sec. 1 of the PIT Act ( Journal of Laws of 2025, item 163, as amended ), art. 86a of the VAT Act ( Journal of Laws of 2025, item 775, as amended ).

 
 
 

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