Major VAT Act Amendments: Vehicle Deductions, Food VAT Hike, E-Invoicing, and Anti-Evasion Measures

• Major VAT Act amendment will gradually reshape VAT rules through 2030, including limits on VAT deduction for passenger vehicles, reclassification of some food and beverages to the 23% VAT rate, and mandatory e-invoicing.
• Financial transaction tax changes clarify the definition of a permanent establishment, potentially creating new tax obligations for some foreign entities.
• The government is planning new measures to combat tax evasion and the shadow economy as part of fiscal consolidation.
• From January 2026, a flat 50% input VAT deduction applies to selected passenger vehicles and related expenses, with stricter reporting for 100% deductions.
• Further VAT reforms, including expanded e-invoicing and new tax authority tools, will be implemented in 2027 and as part of the EU’s VAT digitalisation initiative from July 2030.

Source: bmb.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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