- The VAT deduction cap for luxury cars in the Czech Republic (currently CZK 420,000) will be abolished from January 1, 2027.
- From 2027, taxpayers can claim full VAT deduction on vehicle purchases or technical improvements if the car is used for taxable business activities.
- Transitional rules would allow full deduction for cars bought or improved before end-2026 but registered only after January 1, 2027.
- Taxpayers may also top up previously limited deductions for vehicles registered in 2027 by filing an amended return by the end of January 2027.
- It is still unclear whether advance payments made before end-2026 will also qualify for full deduction.
Source: grantthornton.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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