European Union Gazettes EC Decision on Slovakian VAT Deduction Limit for Specified Vehicles

The European Union Official Gazette May 5 published the European Council (EC) Decision No. 2025/852, authorizing Slovakia to limit VAT deductions for specified vehicles in derogation of Directive 2006/112/EC on the common system of VAT. The decision includes measures: 1) allowing Slovakia to set a 50 percent limit on input VAT deductions for expenses related to specified vehicles partially used for non-business purposes; 2) authorizing Slovakia to not treat private use of vehicles subject to the 50 percent limit and included in business assets as supplies of services; 3) specifying that qualifying expenses include purchases, leases, intra-community acquisitions, imports, and ...