New DPH Deduction Limits for Car Purchases – Impact on Business Strategies and Opportunities

• Maximum limit for VAT deduction when purchasing a car is now set at 420,000 CZK from January 2024
• This will affect purchases of cars in the price category above 2 million CZK, including used cars
• Cars purchased from January onwards will not be eligible for extraordinary depreciation
• Those who paid a deposit by the end of 2023 are not affected by the new restriction
• Some businesses are considering establishing companies in Slovakia or Poland to take advantage of lower VAT rates
• Ready-made companies with VAT payer status in Slovakia and Poland are available for purchase
• Specific rules for VAT deduction in different countries and criteria for new and used vehicles must be considered

Source: pkfapogeo.cz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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