Financial Leasing and VAT Deduction from 1.1.2025

• Financial leasing is no longer considered a service but a good.
• The change affects the tax regime, specifically VAT deduction.
• Before 2025, VAT was deducted from individual installments during the lease term.
• Leasing companies paid VAT gradually.
• This benefited leasing companies’ cash flow.
• From 2025, the system aligns with European legislation.
• The change is based on European Court of Justice rulings.
• The new system is more advantageous for Slovak businesses.

Source: podnikajte.sk

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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