The article outlines the changes in VAT deduction rules for company cars in Slovakia, specifically detailing the conditions under which a business owner can fully deduct VAT on a vehicle. It highlights the requirement for those who use the car exclusively for business to report this to the tax office, as well as the necessity of maintaining electronic records of trips. The article includes insights from tax consultant Silvia Hallová to clarify how these rules impact business owners, especially concerning vehicles ordered and partially paid for in the previous year but used in the current year.

Moreover, it explains that for business owners who use personal vehicles or motorcycles for both personal and business purposes, a 50% flat-rate VAT deduction can be applied from January onwards. This deduction applies to various costs associated with the vehicle, such as fuel, repairs, maintenance, and highway tolls. Additionally, those who do not maintain electronic trip records will also have their deductions capped at this 50%, effective until June 30, 2028. These new regulations are significant for businesses as they adapt to the compliance requirements that directly affect their tax positions.