Slovakia to Impose 50% VAT Deduction Limit on Mixed-Use Passenger Vehicles from 2026

• Slovakia will limit VAT deductibility to 50% for mixed-use passenger vehicles and related expenses not used exclusively for business.
• The 50% limitation becomes mandatory from 1 January 2026, despite EU authorisation from 1 July 2025.
• Until 31 December 2025, taxpayers can still choose full or pro rata VAT deduction.
• The rule applies to purchases, leases, imports, and related supplies for M1, L1e, and L3e category vehicles.
• Exclusions include vehicles for resale, hire, passenger transport, driving lessons, testing, or as replacements during maintenance.

Source: fintua.com

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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