Slovakia Plans 50% VAT Deduction Limit on Company Cars Used for Private Purposes

• Slovak government plans to change VAT deduction for vehicle purchases
• Businesses may only deduct half of the VAT for company cars used privately
• Future changes will include a 50 percent deduction limit for vehicles used privately
• This includes restrictions on VAT deductions for parts, accessories, services, and fuel
• The aim is to prevent system abuse and simplify administration for businesses
• The proposal is based on an EU Commission suggestion allowing temporary VAT deduction limits
• Applies to certain motor vehicles and motorcycles not exclusively for business
• New rule expected from July 1, 2025, to June 30, 2028, with possible extension
• Similar systems exist in other EU countries like Belgium and France
• The Ministry of Finance announced the plan in November 2024 as part of a tax evasion action plan
• The law is not yet in the legislative process, so changes will take effect after July 1, 2025
• The goal is to prevent system abuse, such as excessive private use of luxury cars by small companies

Source: podnikajte.sk

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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