Did you know that from January 2026, the right to deduct input VAT for motor vehicles will be limited to 50%?

🔎 What is changing?

As part of the third consolidation package, the right to deduct input VAT will be limited for expenses related to:

• The purchase, leasing, import or acquisition of passenger motor vehicles of category M1 and motorcycles L1e and L3e;
• Related goods and services (fuel, spare parts, accessories) connected to the operation of these vehicles,
  if they are also used for purposes other than business.

ℹ️ Why is this important?

The 50% limitation eliminates the need to tax private use as a supply of services to an employee or shareholder. This may simplify record-keeping and reduce the risk of accounting errors.

⛔ Who is excluded from the limitation?

The rule does not apply to vehicles used or acquired for resale, rental or leasing, passenger transport for consideration including taxi services, provision of driving lessons, driver training, or demonstration, test or replacement vehicles provided during repairs.

Another alternative to retain the full VAT deduction is to prove exclusive business use and keep detailed electronic records demonstrating the extent of use. This fact must then be reported to the Slovak Tax Authorities.

Additionally, non-deducted VAT will not be considered a tax-deductible expense.

💡 Need help?

Do you have questions about how to correctly set up your VAT deduction? Our experts are ready to help you prepare for these changes. Contact us using the details below.

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The tax environment is a subject to frequent changes. We strive to reflect the current state as accurately as possible, but all information on our website is valid as of the date of publication. If you have any questions or uncertainties, please don’t hesitate to reach out to us. We will assess the current impact of any tax-specific issue on your situation or company.