- The cap on input VAT deduction for category M1 passenger cars (currently CZK 420,000) is expected to be lifted at the end of 2026.
- Full VAT deduction, including for higher-end vehicles, is likely to return after an amendment to the VAT Act in 2026.
- Income tax rules remain unchanged: depreciation and lease payments are tax-deductible only up to CZK 2 million.
- Businesses should reconsider the timing of fleet investments, as lifting the VAT cap could lead to significant savings.
Source: roedl.cz
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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