In Brief

• Revenues from intermediating the sale of cars to dealerships are taxed at a rate of 8.5% under the lump-sum tax on recorded income.
• These services include consulting and negotiations for retail customers.
• Commission revenues should be recorded separately from other services.

Taxation of Intermediary Services in Car Trade

Revenues generated by entrepreneurs who act as intermediaries in the process of selling new cars to dealerships, and receive commissions for this activity, should be taxed at a rate of 8.5% under the lump-sum tax on recorded income (Intermediating the Sale of New Cars with 8.5% Tax – Rzeczpospolita). These services include, among others, consulting for retail customers and conducting negotiations on behalf of the dealership.

Nature of the Services Provided

This tax classification pertains to the provision of intermediary services, not the actual purchase and resale of the vehicle on the entrepreneur's own account. For small businesses, especially those operating as sole proprietorships and advising on car purchases, the choice of the appropriate tax form has a direct impact on determining the applicable rate on invoices. Therefore, commission revenues should be accounted for separately from other types of income.

Accounting Issues for Entrepreneurs

An entrepreneur must verify whether their revenues qualify for the lump-sum tax, as well as check if other services they provide are subject to different tax rates. The determination of the appropriate rate depends on the actual nature of the activities performed. To avoid errors in accounting, it is advisable to consult a tax advisor before making the settlement.