Air Conditioning Purchase for Businesses – VAT Refund & qualification as deductible cost

Introduction

Thermal comfort in the workplace is significant not only for employee well-being but also for their productivity. Consequently, many companies opt to install air conditioning systems. However, how should the purchase of an air conditioner be properly accounted for in the company’s books? Can VAT be deducted and the expense included in the cost of obtaining income? Answers to these questions are crucial for any entrepreneur planning such a purchase.

Possibility of VAT Deduction

Under current regulations, entrepreneurs can deduct VAT on purchased goods and services that are used for business activities. In the case of air conditioning, if it is installed in an office or another location related to the business, VAT can be fully deducted. This is because the air conditioner serves to maintain proper working conditions, which directly relates to business operations.

Inclusion of Air Conditioning Purchase in Income Costs

The costs of purchasing and installing air conditioning can be included in the cost of income, which reduces taxable income. It is crucial that the air conditioning is used in a manner related to business activities. These expenses can be settled in one go at the time of purchase or amortized if the air conditioning is considered a fixed asset. For air conditioners priced over 10,000 PLN, they are classified as a cost within depreciation write-offs, unless there are special cases of using one-time depreciation.

Special Cases – Home Office

If the air conditioning is installed in part of a residence used as a home office, it is possible to deduct the full VAT if the air conditioner operates only in the home office. .

Summary

Purchasing air conditioning can be tax advantageous if properly accounted for. It is important for entrepreneurs to demonstrate the connection between the purchase and the business operations. In case of doubt, it is advisable to consult with a tax advisor who can assist in properly classifying the expenditure and optimizing its settlement.

We encourage you to contact our office if you need help with this matter or have more questions about tax optimization in your company.