50% VAT Deduction Limit for Company Cars Used Privately Effective from January 2026

• From January 1, 2026, VAT deduction for company passenger cars used also for private purposes will be limited to 50%.
• The restriction applies to vehicles in categories M1 (passenger cars), L1e (light two-wheelers), and L3e (motorcycles), as well as related goods and services (e.g., spare parts, fuel, maintenance, rental except short-term).
• The new rule removes the obligation to keep detailed records of business vs. private use for these vehicles.
• The limitation does not apply to commercial vehicles (e.g., trucks, vans, trailers) or vehicles costing up to 1,700 euros.
• Selected foods are removed from the reduced VAT rate and will be taxed at the standard 23% rate.

Source: danovecentrum.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.

---

---