The Slovak Republic Ministry of Finance has announced that businesses can only claim a 50% VAT deduction on passenger vehicles, fuel, repairs, and maintenance, effective 1 July 2025.
This will raise acquisition and operating costs by over 10%.
This follows the European Commission’s proposal for a Council Implementing Decision on 13 March 2025 that would allow the Slovak Republic to restrict input VAT deductions on motor vehicles and motorcycles to 50%, starting 1 July 2025.
The Decision excludes vehicles used for resale, rental, passenger transport, driving lessons, testing, or replacements.
The Slovak government also requested permission to limit input VAT deductions on motor vehicles and motorcycles used for private and business purposes, citing the current system’s complexity.
