Slovakia Introduces 50% Flat-Rate VAT Deduction for Company Cars Used Privately from 2026

• From 2026, a flat-rate 50% input VAT deduction will apply to selected company passenger cars used for both business and private purposes, regardless of actual usage split.
• Vehicles claimed as 100% business use (full VAT deduction) must be reported monthly to tax authorities via a new electronic form.
• Non-deductible VAT will be a non-tax-deductible expense for income tax purposes, but the Income Tax Act still allows allocation ratios like 80:20 for business/private use.
• The change affects VAT deductions on related vehicle costs (fuel, servicing, leasing, etc.) and may increase costs and administrative burden, especially for SMEs.
• Businesses previously unable to claim VAT on cars used mainly for private purposes can now deduct up to 50% VAT, but those with mostly business use and occasional private use may face higher costs.

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.

---

---