EU Authorizes Slovakia to Limit VAT Deductions on Vehicles, Effective July 2025 to June 2028

The EU Official Gazette published EC Decision No. 2025/852 on May 5
Slovakia is authorized to limit VAT deductions for certain vehicles
A 50 percent limit on input VAT deductions is allowed for vehicles used partially for non-business purposes
Private use of these vehicles is not treated as supplies of services
Qualifying expenses include purchases, leases, acquisitions, imports, and equipment costs
The measure is effective from July 1, 2025, to June 30, 2028
Slovakia must request an extension by September 30, 2027
The decision took effect upon notification

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.