Changes in VAT on cars from January 1, 2026
What changes await us in VAT on cars in 2026?
but companies will still have the option of choosing a 100% deduction, provided they meet strict conditions – in particular, keeping detailed electronic records of vehicle use and registering them with the tax office.
1. Flat-rate VAT deduction of 50% – basic rule for companies
From January 1, 2026, to June 30, 2028, a fixed VAT deduction limit of 50% will apply to:
purchase of a category M1 passenger motor vehicle,
purchase of motorcycles and mopeds (L1e, L3e),
operational or long-term lease,
Fuel, servicing, repairs, spare parts, car washing, tire service, and all other services
Important:
Regardless of whether the car is used for business purposes 70%, 90%, or 99% of the time, the claim remains at a maximum of 50%. The new rules also apply to vehicles purchased before January 1, 2026.
2. When is it possible to claim a 100% VAT deduction?
Plný odpočet je výnimkou, nie pravidlom. Možno ho uplatniť iba v týcho prípadoch:
taxi service and any passenger transport,
short-term car rental (car rental companies),
driving schools (training vehicles),
demonstration or test cars,
replacement vehicles provided to customers during repairs,
vehicles used exclusively for business purposes without a single private journey.
3. Recording obligation for 100% VAT deduction
Ak chce firma uplatniť plný odpočet, musí viesť veľmi detailné záznamy v elektronickej forme:
Vehicle registration number and VIN number.
The odometer reading on the day the records are started and at the end of each tax period.
Complete logbook (serial number of the entry, date, time, purpose, route, person who drove the vehicle).
Records of fuel consumption (refueling receipts), servicing, replacement of parts, equipment, insurance claims, etc.
Important:
Records must be electronically available upon request by the tax office.
4. Oznamovacia povinnosť pre vozidlá so 100 % režimom
Every vehicle for which the company claims a 100% VAT deduction must be reported to the tax office electronically on a special form within the deadline for filing the tax return for the period in which the deduction was claimed.
5. The non-deductible portion of VAT will not be a tax expense.
A change in the income tax law will mean that 50% of unclaimed VAT will not be a tax expense. The company will not be able to recognize it in its financial results and it will be a non-taxable expense.
In practical terms, this means:
- the car will be more expensive for the company due to this unclaimed VAT
- the income tax base will increase,
- the resulting tax liability will increase.
