European Commission Adopts Proposal for Council Decision on Slovakian VAT Deduction Limit for Specified Vehicles

The European Commission (EC) March 13 adopted Proposed Council Implementing Decision No. COM (2025) 104, authorizing Slovakia to limit VAT deductions for specified vehicles in derogation of Directive 2006/112/EC on the common system of VAT. The proposed decision includes measures to: 1) allow Slovakia to set a 50 percent limit on input VAT deductions for expenses related to specified vehicles partially used for non-business purposes; 2) authorize Slovakia to not treat private use of vehicles subject to the 50 percent limit and included in business assets as supplies of services; 3) specify that qualifying expenses include purchases, leases, intra-community acquisitions, ...