Slovakia Tax Agency Announces New VAT Rules for Passenger Cars

The Slovak Financial Administration Dec. 22 announced new VAT deduction rules for passenger motor vehicles, effective Jan. 1, 2026. The announcement includes that: 1) a 100 percent VAT deduction applies to vehicles used exclusively for business purposes and supported by detailed electronic records; 2) a 50 percent VAT deduction applies to vehicles used for mixed business and private purposes, including vehicles acquired under operating or financial leasing; 3) the 50 percent limitation also applies to fuel, spare parts, and car service expenses related to mixed-use vehicles; 4) taxpayers claiming a full deduction must keep separate electronic records for each vehicle, ...