VAT Deduction Cap and Pro Rata Rule for Mixed-Use Motor Vehicle Expenditures Clarified by Court

The Supreme Administrative Court ruled on VAT deductions for motor vehicle expenses not used exclusively for business.
The 50% VAT deduction cap applies when determining the base VAT amount eligible for deduction.
If the taxpayer has mixed activities (taxable and non-taxable), the pro rata rule must be applied to the already capped VAT amount.

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.