Did you know that starting 1 January 2026, the calculation of accounting and tax depreciation for passenger cars will change?

🔍 What is proposed?

• Non-deductible VAT will no longer be considered a tax-deductible expense.
• There will be a difference between accounting and tax acquisition cost:
  • Accounting acquisition cost will include the non-deductible VAT portion.
  • Tax acquisition cost will exclude the non-deductible VAT portion.

ℹ️ Why does it matter?

Taxpayers will calculate depreciation based on two different acquisition costs. From a practical perspective, accounting software will need to be properly configured to record assets separately for accounting and tax purposes. This ensures that VAT is not treated as a tax-deductible expense.

Note: This proposal has not yet been approved by Parliament, but it indicates a possible approach in connection with the restriction of VAT deduction for selected passenger vehicles.

💡 Have questions?
Our experts are ready to help you prepare for these changes. Contact us using the details below.

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