Slovenia Tax Agency Clarifies Transitional Provisions on VAT Deduction for Specified Zero-Emissions Vehicles

The Slovenian Financial Administration Jan. 26 clarified the the application of transitional provisions for the VAT deduction permitted on purchases of passenger cars, motorcycles, bicycles, and similar vehicles not exceeding 80,000 euros (US$86,988), including tax, that don’t emit CO2. The transitional provision allows a proportional correction if a taxpayer purchased the vehicle before the VAT deduction entered into force. A taxpayer inquired if depreciation on a qualifying vehicle would be fully recognized if the correction provision was not used. The agency clarified that: 1) the depreciation cost in the portion of the purchase price that originates from input VAT that ...