Kilometer 2024 and online mileage records
6 min
February 2023
Mileage rate 2023. in 2023 introduced new rates, which significantly affected the way in which costs related to the use of private vehicles for business purposes (business purposes of personal cars) are accounted for. This change is of great importance to both employers and employees who use their own cars, motorcycles or mopeds as part of their professional duties.
This article aims to providing comprehensive information on the new rates mileage 2023, Tips for keeping notes on vehicle mileage and best billing practices these costs.
New Kilometric Rates in 2023
The Ministry of Infrastructure has updated the rates for using private vehicles for business purposes in 2023. These changes are in response to the rising cost of operating vehicles, including increases in fuel prices, insurance and maintenance. Here are the current rates, which effective January 1, 2023:
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- Passenger cars with engine capacity up to 900 cm³: 0,89 PLN per kilometer,
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- Passenger cars with engine capacity above 900 cm³: 1,15 PLN per kilometer,
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- Motorcycles: 0,69 PLN per kilometer,
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- Mopeds (scooters): 0,42 PLN per kilometer.
These rates represent the maximum amounts that an employer can reimburse an employee for the use of a vehicle for business purposes without generating additional tax costs.
Below is the form for adding a vehicle in the mileage application with the type of vehicle specified:
How to Keep Vehicle Mileage Records?
To take advantage of mileage billing, employees must keep detailed mileage records. Records this should include The date of each trip, the purpose of the trip, the route, the number of kilometers traveled and the type of vehicle.
Accurate record-keeping is crucial not only for calculating the refund due, but also for avoid potential misunderstandings During a tax audit.
Changes in Regulations vs. Business Practice.
New rates in 2023 (mileage records kept internally are required) require businesses to update their internal billing procedures, in the context of using personal cars for business purposes. A personal car can now be used at a higher rate. This is especially important for companies where employees regularly use their own vehicles for business purposes because the law requires it. Employers should carefully inform their employees about the changes in rates and the requirements for mileage records. In addition, it is worth considering introduction of the software for fleet management or mileage accounting, which can significantly facilitate and streamline the settlement process.
As of January 17, 2023 (the date when the act went into effect), the Decree of the Minister of Infrastructure of December 22, 2022, amending the Decree on the conditions for determining and the manner of reimbursing the costs of using for business purposes passenger cars, motorcycles and mopeds not owned by the employer.
Optimize tax costs
https://youtu.be/1eckIcK9bREImpact on Company Costs and Household Budget
Changes in mileage rates have a direct impact on company costs and employees' household budgets. On the one hand, the increased rates allow employees to better cover the cost of using private vehicles. On the other hand, employers must include these higher rates in their budgets for business-related costs.
Best Practices and Tips
- Accurate Records: Keep accurate mileage records, including all required information, so you can avoid problems during an IRS audit.
- Communication: Keep employees regularly informed of changes in regulations and rates.
- Software: Consider using specialized software to manage your mileage records.
- Cost Analysis: Regularly analyze the costs associated with the use of private vehicles for business purposes (mainly we mean the use of a passenger car, trucks have separate regulations) to optimize expenses.
Below is a summary of information for mileage rate 2023
The year 2023 will bring you changes in mileage rates, so you will feel a direct impact on how you account for the costs of using private vehicles for business purposes. Both employers and employees should be aware of these changes and adjust accordingly to the new regulations. Keeping mileage records, regular communication and using fleet management tools are key to legally compliant mileage accounting.
Additional sources : the Law of September 6, 2001 on road transportation; the Decree of the Minister of Infrastructure of December 22, 2022 amending the Decree on the conditions for determining and the manner of reimbursing the costs of use for business purposes of passenger cars, motorcycles and mopeds not owned by the employer, and the Decree of the Minister of Infrastructure of March 25, 2002 on the conditions for determining and the manner of reimbursing the costs of use for business purposes of passenger cars, motorcycles and mopeds not owned by the employer.
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