Table of Contents:
1. When is excise duty due for van conversion?
2. Do crew vans fall under excise duty?
It seems there is a chance for no excise duty on so-called “crew vans” with two rows of seats. Entrepreneurs faced issues with vehicles “manufactured” in Poland by making structural changes, such as installing a second row of seats. In such cases, the authorities of the National Revenue Administration claimed that the reconstruction changed the type of vehicle from a truck to a passenger car, resulting in the obligation to pay excise duty. However, several groundbreaking rulings were issued in 2023.
When is excise duty due for van conversion?
Until recently, both tax authorities and administrative courts considered “crew vans” as passenger-cargo vehicles, i.e., vehicles designed to carry up to nine people (including the driver), whose interiors could be used without structural changes to transport both passengers and goods. The installation of a second row of seats carried a significant risk of the authorities recognizing the vehicle as primarily intended for transporting people, classified under CN 8703, rather than CN 8704, which is appropriate for vehicles primarily intended for the transport of goods. This would result in the need to pay excise tax on the first sale of such vehicles in Poland or their intra-Community supply.
Do “crew vans” fall under excise duty?
On August 30, 2023, the Supreme Administrative Court (NSA) issued a ruling that outlined the criteria for determining when a vehicle is not primarily intended for transporting people but for transporting goods and equipment. Consequently, such vehicles should be classified under CN 8704, which exempts them from excise duty. The criteria included:
• Separate cabins (one for the driver and passengers, another for the cargo area),
• A permanent partition between the driver/passenger area and the cargo space (used solely for transporting goods),
• No windows, passenger amenities (even in the cargo area), or typical passenger car comfort and interior finish in the rear passenger section.
These criteria are met by the vast majority of standard delivery vans, even after structural modifications, such as adding a second row of seats. According to the NSA, excise duty may only apply to multifunctional vehicles where there is no doubt that their primary purpose is to transport people. Moreover, excise duty cannot be imposed on vehicles where the functions of transporting people and goods are equal. The court also emphasized that vehicles for transporting goods, even equipped with additional seats, are not luxury goods (and only such goods – in theory – should be subject to excise duty).
There is hope that thanks to these new rulings, companies that ordered vehicle conversions will have greater certainty regarding excise taxation. Additionally, it opens up the possibility for entrepreneurs who have already paid the tax to apply for a refund.
