Slovakia Gets EU Approval to Limit VAT Deductions for Vehicles

• The European Commission authorized Slovakia to limit VAT deductions for certain vehicles.
• Slovakia can set a 50 percent limit on input VAT deductions for vehicles partially used for non-business purposes.
• Private use of these vehicles will not be treated as supplies of services.
• Qualifying expenses include purchases, leases, imports, and equipment costs.
• The measure will apply from July 1, 2025, to June 30, 2028.
• Slovakia must submit an extension request by September 30, 2027.
• The decision takes effect on the date of notification.

Source: news.bloombergtax.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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